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Full text of "Republican campaign text-book 1900;"

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Republican 
Campaign 



Text-Book 



1900 




SUED BY THE 



REPUBLICAN 

NATIONAL 

COMMITTEE 




X 



LIBRARY OF CONGRESS. 

UNITED STATES OF AMERICA. 
Chap Shelf'_ ^____ 

PRESENTED BY 



REPUBLICAN 

CAMPAIGN TEXT- BOOK 

1900 



, ISSUED BY THE 

REPUBLICAN NATIONAL COMMITTEE 



PRESS OF DUNLAP PRINTING COMPANY 
1832-34-36 CHERRY STREET and 118-20-22-24-26 N. JUNIPER STREET 
PHILADELPHIA, PA. 






■"-. 



80010 



OUTLINE OF CONTENTS. 



Page 
Prosperity under Republican principles: 



Business interests 6 

Manufacturers : . .\ .TT\l . XC[ J. • I<1> 11 

Farmers : .>f .Wf . A . 17 

Workingmen 27 



Leading events during present Administration: 

War with Spain 44 

Cuba ._ 50 



Porto Pvico 54 

The Philippines 59 

Hawaii 75 

Samoan Islands 77 

The Chinese Question 125 

"Imperialism" 7S 

Expansion 91 

The Currency Question 93 

Trusts Ill 

The Nicaragua Canal 119 

Colonization, effect upon commerce 134 

The Departments, their work under present Administration 157 

The Philippines a door to Asiatic markets, 194 

Statistical data 231 

Documentary data 335 

The platforms of 1900 421 

Speeches of Acceptance 437 



^ 



INDEX 



A Page. 

Addystone decision under Sherman anti-trust law 112 

Agricultural Department, work of 174 

Aguinaldo, Alliance with, denied by Admiral Dewey 60 

Aguinaldo, Alliance with, prohibited by President McKinley 60 

Aguinaldo, commends anti-imperialists 345 

Aguinaldo, correspondence with, by anti-expansion organizations 344 

Aguinaldo outlines imperialistic platform for Democratic use 64 

Aguinaldo, preparation for hostilities by, while professing friendship. . 61 

Aguinaldo repudiated by Filipino leaders 221 

Aguinaldo warns friends of plans for massacre in Manila 63, 33S 

Aguinaldo's treachery 61 

Aguinaldo's career, sketch of, by Hon. John Barret 218 

Aguinaldo's Government orders extermination of Americans 62 

Aid for Porto Rico, President's message recommending 364 

Aldrich Report on Wages, etc., brought down 20 

Alliance with England, has no existence 131 

Alliance with England denied by Secretary Hay 160 

American Agriculturist on farm values under low tariff 20 

American Federation of Labor Reports in 1900 ::."; 

American prisoners in Cuba 44 

American shipping interests 143 

Americans in the Philippines, orders for m : 337 

American troops in the Philippines, first attack of Filipinos upon 62 

Anglo-American alliance denied 160 

Animals, farm values of, affected by tariff 10 

Annexation of Cuba, Hawaii, etc., urged by Democrats 82 

Anti-imperialists, correspondence of, with Aguinaldo 344 

Anti-trust law, decisions under Ill 

Appropriations for Philippines, Democratic vote on 351 

Army increase supported by Democrats and Populists To 

Army in Philippines, Insanity among 67 

Army losses during Spanish-American and Philippine War 67 

Asia and Oceania, Markets of 195 

Asia, Commerce of United States with 02, 310 

Attack of Filipino forces on American troops 62 

B 

Bailey, Hon. J. W.. on Bryan, in 1S96 210 

Bank deposits under low and protective tariffs 

Banking operations in the United States 232 

Beet Sugar and the Porto Rican Act 152 

Beet Sugar interests and the tropics 151 

Beet Sugar vs. Cane Sugar 258 

Benton on extension of the Constitution 305 

Bimetallism, international, Republican Party faithful to 95 

Boer War 370 

Boer War, attitude of Administration toward 131 

Bond issue under refunding operations 172 

Boots and shoes, prices of, under two tariffs 302 

British colonies no expense to Great Britain 137 

British colonies, their purchases from and sales to the Mother 

country 313 

Bryan and Free Silver 230 

Bryan, a friend of the Silver Trust 115 

Bryan and McKinley States of 1896. population of, analyzed 322 

Bryan, Democratic views of 210 

Bryan. Filipino demonstrations in behalf of , 365 

Bryan's 1896 assertions disproved by subsequent developments 225 

iii 



iv INDEX. 

Page. 

Bryan's Indianapolis speech. Comments on 412 

Bryan's speech to Notification Committee 441 

Bryan's support of Spanish-American treaty 69, 442 

Bryan's utterances encourage Filipino insurrection 04, 342 

Business activity under three recent tariffs 7, 237 

Business and Industries, 1893-1896 40 

Business conditions illustrated by Bank Deposits 9, 232 

Business conditions illustrated by postal receipts 9, 265 

Business conditions since the '"Crime of '73" 6 

Business conditions under Cleveland and McKinley Administrations.. 237 

Business failures under three recent tariffs 7. 231 

C 

Canned Beef inquiry 357 

China, Attitude of Administration toward, in present difficulties 126 

China, Currency of, described 109 

Circulation, Growth of since Bryan's 1896 nomination 10, 234 

Circulation of money in the United States, 1860 to 1900 9. 274 

Civil Service and the Merit System 215 

Clearing House returns 231 

Cleveland and McKinley Administrations, business conditions of, con- 
trasted 237 

Cleveland, ex-President, to Democrats 375 

•Coal miners employed under two tariffs 13 

Coal production of the United States and the United Kingdom 303 

•Coal production of the World 206 

Coal production in protective and low tariff countries respectively. ... 206 

Cockran, Hon. Bourke, on Bryan in 1896 212 

Coinage of silver under Cleveland and McKinley Administrations.... 102 

Coinage of United States Mints. 1846 to 1898 278 

Colonies and colonization, effect of, upon population of territory 132 

Colonies of England self-sustaining .- 137 

Colonies of England, purchases from and sales to Mother country by.. 313 

Colonies, their purchases from and sales to the Mother country 312 

Colonization, Cost of 137 

Colonization, Effect of, upon commerce of Mother country 134 

Colored citizenship. Public records of 148 

Colored citizens and soldiers 150 

Commerce, American, on Atlantic and Pacific oceans 319 

Commerce, effect of low and protective tariffs on 4 

Commerce. Growth of in United States, United Kingdom and Ger- 
many 269 

Commerce with the Orient. Value of Philippines in 194 

Commerce, Growth of, in Protection and Free Trade countries 267 

Commercial Expansion, contrasted with Democratic slavery expansion 91 

Congressional vote by States, 1896 to 189S 296 

Commerce of United States with Gold and Silver standard countries, 

102. 109 

Commerce under low and protective tariffs 305 

Commerce with colonies, experiences of England. France, etc 134 

Commerce with Cuba, Porto Rico, Hawaii and the Philippines 92. 141 

Commerce with Oceania, 1889 to 1899 311 

Commerce with the Orient 92 

Commercial advantage through control of Philippines 194 

Commerce of European countries with their colonies 138 

"Consent of the Governed" ignored by Jefferson 85 

"Consent of the Governed," Jefferson on S3 

"Consent of the Governed" not recognized under Democratic ex- 
pansion 88 

Consumption of wheat, wool and other farm products. 1871 to 1899. . 241 

Constitutional amendment prohibiting trusts, Democratic vote on. 113, 376 

Constitution. Extension of 379, 394-6 

Constitution in Porto Rico and the Philippines. Ross on 379 

Constitutional Questions construed 395 

Constitution in Porto Rico and the Philippines. Long on 396 

Cotton industry. Growth of. in the United States 16, 246-248 

Cotton manufactured by Northern and Southern mills. .'. 16 

Cotton, relation of production to prices of 16 

Credit of United States the best in the "World 378 

Crops, Value of. affected by tariffs 19 

Cuba, Army losses in 67, 300 

Cuba. Commerce of, with United States. 1SS5 to 1900 141 



INDEX. V 

Page. 

Cuba, Democratic demand for annexation of, 1860 82 

Cuba, Increased commerce with 92 

Cuba, Porto Rico and the Philippines as a market 141 

Cuba, Principal events in since 1897 50 

Cuban Postal frauds 368 

Cuban prisons. Release of American prisoners from 44 

Cuban independence, Preparations for 52 

Currency Law of 1900 171, 185, 372 

Currency legislation, Possibility of under Democratic President 93 

Currency of principal countries in 1873 and 1899 272, 320 

D 

Democratic control of newly added territory 89 

Democratic expansion ignores "Consent of the governed" 88 

Democratic expansion in behalf of slavery 81 

Democratic imperialism in history 89 

Democratic imperialism in the South 148 

Democratic platform, 1896 430 

Democratic platform, 1900 426 

Democratic plans for annexation of Cuba 82 

Democratic President could force Silver legislation 93 

Democratic record on shipping 144 

Democratic success will endanger the Gold standard 93 

Democratic support of Spanish American treaty 69 

Democratic views on the Philippines 70 

Department of Agriculture, Review of the work of 174 

Departments under President McKinley, A Review of 157 

Dewey denies alliance with Aguinaldo 60, 337 

Dingley Law, Operations of, compared with Wilson Law 197 

Dingley Law, Review of work of 160 

Dividends and earnings of National Basks 275 

B 

Earnings of labor, 1840 to 1S99 29 

Employment of labor in 1900, Reports of Labor Unions on 37 

Employment on railways under three tariffs 295 

England and United States, Growth of manufactures compared 13 

England's colonies, Importance of, to her commerce 138 

England, Trusts in 176 

England versus United States in iron and steel production..'. 151 

European tariffs becoming protective 202l 

Excess of Exports under McKinley Administration 4 

Excess of Imports under low tariffs 4 

Expansion not imperialism 79 

Expansion Democratic, '"Consent of the governed" ignored under 88 

Expansion, President McKinley on 74 

Expansion of United States, History of 81 

Expansion under Democrats, Slavery the motive in 81 

Expenditures and Receipts during Spanish-American War 197 

Explanation of plan of Text Book 1 

Exports, Effect of tariff upon 262, 266 

Exports of farm products under three tariffs 243 

Exports of manufactures 12, 263 

Exports, excess of, under McKinley and Protection 4 

Exports to Cuba, Porto Rico, Hawaii and the Philippines 141 

Exports to Asia, Oceania and the Orient, 1890 to 1896 195-6 

F 

Failures and liabilities under three tariffs 7, 231 

False statement of American cruelty circulated in Philippines 222 

Farm animals, Value of, under Cleveland and McKinley 23 

Farm animals, Value of, affected by tariff 19, 240 

Farm consumption, Reduced prices of articles of 20 

Farm consumption, Reduced prices of articles of 20, 255 

Farm crops, Value of, 1866 to 1899 241 

Farm prices, 1896 to 1900 24, 243 

Farm prices and freight rates, relative reduction of 21 

Farm prices by States. 1892 to 1899 249 

Farm products exported under three tariffs 245 

Farm products imported under three tariffs 171 

Farm products, Reduced prices of, under low tariffs 17 



vi INDEX. 

Page. 

Farm products, Reduced freight rates ou 256 

Farm products, total value of, in United States 18 

Farm prosperity under two administrations 22 

Farmer and Free Silver 224 

Farmer and the Tariff 237 

Farmer, effect of high and low tariffs upon 17, 174 

Farmers' interests under McKinley Administration 174 

Farm prices according to "Omaha World Herald" 375 

Federation of Labor Reports on Labor conditions, 1900 35 

Fifty-sixth Congress, Work of, reviewed 199 

Filipino Insurgents, President prohibits joint occupation with 60 

Filipino order for slaughter of Americans in the Philippines 337 

Filipino preparations for hostilities officially shown 61 

Filipino treachery discovered 339 

Finances of Spanish-American War 173 

Floating the War Loan 174 

Foraker, extracts from speech of, on Porto Rico 57 

Foreign raw material, Advance in prices of 209 

Free Homes Law enacted 200 

Free Silver and the Farmer 24 

Free Trade between Porto Rico and the United States provided for. . . 56 

Free Trade in England, Trusts under 116 

Free Trade labor versus Protected labor 32 

Free Trade losing ground in Europe 202 

Freight business of railways as evidence of prosperity 8, 235 

Freight rates on farm products, Reduction of 21, 256 

French colonies, Commerce of 136 

French Protective Tariff 206 

G 

German vote unaffected by imperialism 80 

Germany's progress under protection 207 

Germany's Protective Tariff system 202 

Gold and Silver currency, 1873 to 1899 272 

Gold and Silver production of the United States, 1492 to 1899 106, 276 

Gold and Silver production of the World, by countries 281 

Gold imported and exported 279 

Gold production, 1850-1899, double that of preceding 350 years 104 

Gold production of the world by half century periods from 1500-1899 456 

Gold Reserve. Increase of, under new currency law 172 

Gold standard adopted in India 100 

Gold standard adopted in Russia, India and Japan 98 

Gold standard countries, Commerce with 102, 109 

Gold standard in danger 93 

Gold stocks of the World 102 

Gompers on labor 36 

Growth of American commerce in the Orient 92 

H 

Hague Peace Conference ' 158 

Hawaii, Commerce of, with the United States 14 

Hawaii, Democratic efforts to annex 82 

Hawaii, Description of 66 

Hawaii, History of annexation of 75 

Hawaii, Increased commerce with 14, 92 

Hawaii, President Pierce's attempts to annex 82 

Hay, Hon. John, denies Anglo-American alliance 160 

Hay-Pauncefote treaty 119 

Home market improved under Protection 17, 241 

I 

Ice Trust and Tammany 113 

Imperialism, General Lawton on 65 

Imperialism and the German vote 80 

Imperialism in Louisiana, Florida, Texas and California 87 

Imperialism in the South 148 

Imperialism, Jefferson on 83 

Imperialism, President McKinley on 74 

Imperialistic platform announced in advance of Aguinaldo 64 

Imports and Exports of Gold 279 

Importation by great classes. 1884 to 1900 268 



INDEX. vii 

Page 

Importation of farm products under three tariffs 17 

Importations affected by tariffs 2S7 

Imports, Excess of under low tariffs 4 

Imports from Cuba, Porto Rico, Hawaii and the Philippines 141 

Imports of raw materials indicate growth in manufactures 11 

Imports of manufactures, decrease in 12, 268 

Increase in price of imports 307 

Increased purchasing power of farm labor 253, 255 

Increase of army authorized by Democrats and Populists 70 

Increase of wages in 1897 to 1899 39 

Independence of Cuba, Preparations for 52 

India, Effect of gold standard in 100 

India, Establishment of Gold standard in 100 

Insanity in Army in Philippines :. . .67, 299 

Insurgents, Order against joint occupation of Manila with 60 

Insurgents, Political alliance with, prohibited 60 

Insurrection in the Philippines encouraged by Bryan's utterances.... 64 

Insurrection suppressed by troops under Democratic President 90 

International Bimetallism, Republican party faithful to 95 

Internal Revenue collections under War Revenue Act 307 

Inter-oceanic canal 158 

Intervention in Boer War 370 

Iowa labor statistics 292 

Iron and steel manufacture, development under Protection 14, 263 

Iron and steel production in the United States and England com- 
pared 15 

Isthmian Canal, Evidence of need of 318 

J 

Japan adopts Gold Standard 98 

Jefferson on "Imperialism" and "consent of the governed" 83 

Joint tariff association decision under Sherman anti-trust law Ill 

Jolo, Sultan of, treaty with 351 

L 

Labor and the Porto Rican Act 55 

Labor and wages in United States and England 283 

Labor conditions, 1896 and 1900 35 

Labor conditions, 1893 and 1896 40 

Labor conditions in United States and Great Britain compared 32 

Labor, Effect of tariffs upon 27 

Labor employed in tin plate manufacture 154 

Labor legislation enacted by Republicans 43 

Labor on State railways of Europe 34 

Labor organizations in U. S., reports on, 1890-1900 35 

Labor organizations, report of increased wages 39 

Labor, Republican party true friend of 42 

Labor reports of Iowa 27 

Labor reports of Massachusetts 27 

Labor reports of New York 27 

Labor reports of Pennsylvania 28 

Labor reports of Wisconsin 292 

Labor statistics of Iowa and Wisconsin 2?2 

Labor statistics of Massachusetts , 293 

Labor statistics of New York and Pennsylvania 291 

Labor and trusts 31 

Labor Unions report on employment 37 

Labor, wages and prices in Mexico 297 

Lawton, General, on Imperialism 345 

Lindsay, Hon. Wm., on Expansion 72 

Liquor, Sale of, in Philippines 67 

Low and protective tariffs, 1789 to 1900 4 

Long, Hon. Chester I., on extension of Constitution 396 

Louisiana Purchase, and "consent of the governed" 84 

Low and protective tariffs, 1789 to 1900, contrasted 4 

M 

McKinley Administration, excess of exports during 4 

McKinley and Bryan States of 1896, conditions in 323 

McKinley, coinage of silver under 102 

McKinley. President, on expansion 74 



viii INDEX. 

Page 

McKinley. President, on Philippines 324, 336 

McKinley, President, speech of, to Notification Committee 437 

McLaurin, Senator, on Philippines 72 

Manila, joint occupation of, with insurgents prohibited 60 

Manufacture of cotton in United States 16 

Manufacturers' materials, advance in prices of 208 

Manufacturers' materials imported 11 

Manufactures, decreased imports of 12, 268 

Manufactures, effect of tariffs on 267 

Manufactures, growth of, 1890 to 1900 11 

Manufactures, increased exports of 12, 263 

Manufacturing industries, effect of Wilson tariff on 12 

Manufacturing in United States compared with England 13 

Manufacturing under low and protective tariffs 11 

Markets for American goods in Asia and Oceania 195 

Markets for farmers affected by tariffs 17 

Massachusetts labor reports 27, 293 

Massacre of Americans in Philippines, orders for 337 

Merchant Marine of United States 143 

Miles' proclamation to people of Porto Rico 365 

"Militarism" in New Mexico under Democratic President 90 

Miners employed in coal production under two tariffs 13 

Monetary events, 1786 to 1900 409 

Monetary systems of principal countries of world 320 

Money in circulation, increase since 1896 10, 234 

Money in circulation in United States, 1860 to 1900 9, 274 

Morgan, Senator, on Philippines 70 

Mortgages, "American Agriculturist" on 20 

Mortgages, Nebraska, decrease of, since 1896 8 

Morton, J. Sterling, on Bryan 212 

N 

National bank depositories for public funds 417 

National bank dividends, net earnings, etc., 1870-99 275 

National banks, taxes paid by 274 

National debt, refunding of 172 

Navy Department, work of reviewed 165 

Nebraska mortgages, decrease in 8 

Net excess of exports under protection and low tariffs 4 

New Mexico, Democratic suppression of insurrection in 90 

New York labor reports 27, 291 

Nicaragua canal 119 

Nicaraguan canal treaty, text of 124 

O 

Ocean mail service subsidies, United States and United Kingdom 315 

Oceania, commerce with, 1889 to 1899 311 

Occupation of Manila with insurgents prohibited 60 

Open door in China 159 

Organized labor in United States, condition of in 1900 35 

Orient and Philippines as markets 194 

Ostend Manifesto, extracts from 82 

P 

Pacific railroad settlements 182 

Pango Pango harbor, Samoa, acquisition of by United States 77 

Nicaraguan canal treaty, text of 124 

Paramount issue for Democracy announced by Aguinaldo 64 

Peace conference at Hague 158 

Peace treaty between United States and Spain 347 

Peace treaty with Spain, Democratic and Populist votes on 350 

Pennsylvania labor reports ' 28, 291 

Pensions granted by Fifty-sixth Congress 191 

Pension Office, work of during McKinley Administration 192 

Pensions, Republican and Democratic records on, contrasted 190 

Philippine Commission describes Filipino treachery 61, 339 

Philippine Commission reports no alliance with Aguinaldo 60, 352 

Philippine Government, preparations for 68 

Philippine policy announced by Commission '. 336 

Philippines, Army losses in 87 

Philippines, commerce of with United States, 1885-1900 141 

Philippines, Democratic views on 70 






INDEX, ix 



Page. 

Philippines, increased commerce with 92 

Philippines, insanity and suicides in army of 67, 299 

Philippines, outline of events in since May 1, 1898 59 

Philippines, physical characteristics of 73 

Philippines, President's announcement to people of 59 

Philippines, President McKinley on 324, 336 

Philippines, self-government for 6S 

Philippines, statement concerning, by Hon. John Barrett 218 

Philippines, $20,000,000 appropriation, Democratic votes on 353 

Philippines, value of to our commerce 194 

Plan of Text Book outlined 1 

Platform, Democratic, 1896 430 

Platform, Democratic, 1900 426 

Platform, Populist (Sioux Falls) 432 

Platform, Republican 421 

Platform, Silver Party 435 

Policy of United States in Philippines announced by Commission 336 

Popular vote for President, 1888, 1892, and 1896 321 

Populist National Platform 432 

Porto Rican Act 35S 

Porto Rican Act, actual rates of duty under 365 

Porto Rican Act and beet sugar question 152 

Porto Rican currency 57 

Porto Rican duties and free list 56 

Porto Rican government under new law 57 

Porto Rican tariff act, benefit of to labor 55 

Porto Rican tariff, necessity for 55 

Porto Rico, commerce of with United States, 18S5-1900 141 

Porto Rico, events in since 1898 54 

Porto Rico, free trade between, and United States provided 56 

Porto Rico, Gen. Miles proclamation to people of 365 

Porto Rico, increased commerce with 92 

Porto Rico, occupation of, by American forces . 54 

Porto Rico, status of, under Judge Townsend's decision 366 

Porto Rico to receive funds collected from tariff 56 

Postal barometer of business conditions 9, 265 

Postal frauds in Cuba 36S 

Postal statistics of United States, 1700 to 1899 265 

Post Office Department, work of, reviewed 188 

President McKinley's first announcement to Filipinos 59 

President, popular vote for, 1888, 1892 and 1896 321 

Prices in United States and United Kingdom 287 

Prices of agricultural products by States, 1892 to 1899 249 

Prices of farm consumption and production compared 20. 255 

Prices of farm products, 1896 to 1900 24. 243, 375 

Prices of imports increasing 307 

Prices of raw materials, advance inn 20S 

Prices of tin plate, cause of increase in 15 

Proclamation of hostilities by Aguinaldo 341 

Production of gold, growth in 104 

Prosperity illustrated by freight business of railways 8, 236 

Prosperity of farmers under McKinley, Wilson and Dingley tariffs... 22 

Prosperity of labor in United States 35 

Prosperity since "crime of 1873," review of 6 

Prosperity under low and protective tariffs shown by coal production. 206 

Protected labor versus free trade labor 32 

Protection and iron and steel manufacture 14. 264 

Protection versus low tariff 4 

Protective tariffs gaining ground in Europe 202 

Protective tariffs in France, Germany and Russia. 204, 206 

Protocol and peace treaty with Spain 49, 347 

Purchasing power of wages • 29 

Public debt, analysis of 317 

II 

Railway business in United States 235 

Railway business under McKinley, Wilson and Dingley laws 8, 236 

Railway employees' earnings in Europe . 294 

Railway employees' increased earnings under protection 8, 295 

Railways, State owned, wages on 34 

Ratification of Spanish-American treaty by Democratic votes 49 

Ratio of silver and gold, 1833-99 277 



x INDEX. 

Page. 

Raw material, advance in prices of 155 

Receipts and expenditures 5, 197, 306 

^^Reciprocity under President McKinley 187 

Reduction in prices of articles of farm consumption 20, 255 

Reduction in prices of iron and steel under protection 14 

Refunding national debt 172 

Relative reduction of freight rates and farm prices 21 

Republican legislation in favor of labor 43 

Republican National Platform 421 

Republican Party, the true friend of labor -4§- 

Republican record on bimetallism 95 

Republican record on shipping 144 

Retail prices in United States and United Kingdom 287 

Revenues under Dingley and Wilson acts compared 5, 197 

Revenues under low and protective tariffs respectively 5, 306 

Roosevelt, Hon. T., speech to Notification Committee 440 

Ross, Hon. Jonathan, on extension of Constitution 379 

Rural free delivery 188 

Russia adopts gold standard 99 

S 

Samoan Islands and Tutuila, acquisition by United States 77 

Savings banks, conditions of, under three tariffs 9, 233 

Savings banks of the World 234 

. Savings banks of United States 233 

Sherman anti-trust law Ill 

Schurz, Hon. Carl, on Bryan in 1896 210, 213 

Scudder, Hon. T., on expansion 67 

Senate and prospective silver legislation 93 

Sheep and wool, values of, under two tariffs 18 

Shipping interests of United States 143 

Sickles, Hon. D. E., on Bryan in 1896 211 

Slaughter of Americans ordered by Aguinaldo 62 

Slavery expansion vs. Republican commercial expansion 91 

Slavery the motive of Democratic expansion 81 

Silver and ratio to gold 277 

"Silver and wheat" theory shattered 20 

Silver coiuage under Presidents Cleveland and McKinley 102 

Silver, course of, 1896 to 1900 98 

Silver currency of China, Persia and Siam described 108 

Silver dollar, bullion value of, 1850 to 1899 277 

Silver, how maintained at a parity 103 

Silver money in principal countries of the world, 1895-99 281 

Silver Party National Platform 435 

Silver question again the real issue 93 

Silver standard countries, commerce with 102, 109 

Sound currency again the real issue 93 

Sound money in danger 93 

South African War 159 

South African War, attitude of Administration toward 130 

Spanish-American treaty ratified after insurrection began 90 

Spanish-American treaty 49, 347 

Spanish-American War 44 

Spanish-American War, chronology of 46 

Spanish-American War, colored troops in 150 

Spanish-American War, finances of 173 

Standard silver dollars coined under President McKinley 102 

State Department, operations of, reviewed 157 

State-owned railways, wages paid on 294 

State railways of Europe, wages of employees 34 

Sugar, relative production of beet and cane 258 

Sultan of Jolo, treaty with 351 

Sulu Islands, treaty with Sultan of 351 

Suicides in army in Philippines 299 

Supreme Court decision on anti-trust law Ill 

T 

Tammany Ice Trust 113 

Tariff of Germany 202 

Tariff, Porto Rican, benefit of, to labor 55 

Tariff, Porto Rican, rates of duty under 365 

Tariffs, effect of, upon revenues 5 



INDEX xi 

Page . 

Tariffs, low and protective, effect of, upon manufactures 11 

Tariff duties to be paid to Porto Rico 56 

Tariffs, McKinley, Wilson and Dingley, effect of 7 

Tariff, effect of, upon exports 262 

Tariffs of Europe abandoning free trade 202 

Tariff, effect of, upon farm products 19 

Taxes collected from National Banks 274 

Textile industry, growth of, in United States 270 

Tin plate, cause of advance in prices of 15, 153 

Tin plate importations, 1889 to 1899 153 

Tin plate manufacture in United States, decreased imports, etc... 15, 153 

Tin plate, prices of, compared with cost of raw material -. . 155 

Tin plate prices since 1889 154 

Townsend, Judge, decision of, on Porto Rico 366 

Trade of European countries with their colonies 138 

Treasury Department, review of work of 168 

Treasury deposits in National Banks 417 

Treaty between United States and Spain 49. 350 

Treaty, Spanish-American, ratified by Democratic votes 49, 350 

Tropical products, demand for, In United States 305 

Tropical products imported, by great classes 309 

Tropical sugar versus beet sugar 151 

Trusts and labor 31 

Trusts, Bryan and the Silver 115 

Trusts, Bryan suggests Constitutional amendment controlling 113 

Trusts, Democrats defeat Constitutional amendment prohibiting 113 

Trusts in free-trade England 116 

Trusts not a product of protection 116 

Trust amendment to Constitution, text of 376 

Trusts, real attitude of Republican and Democratic parties toward... Ill 

Trust, Tammany Ice 113 

Trusts, two Democratic chairmen on 113 

U 

United States rivals England in growth of manufactures 13 

United States versus England in iron and steel production 15 

• V 

Value of crops affected by tariffs 19. 241 

Value of farm products in United States 18. 240 

Vote for Members of Congress, 1896 and 1898 296 

Vote on Anti-trust Constitutional Amendment 113 

W 

Wages and prices in Mexico 297 

Wages and prices, statistics of 282 

Wages, increase of, in 1897, 1898 and 1899 39 

Wages in England and United States compared 33 

Wages in tin plate industry under two tariffs 155 

Wages of employees on State-owned railways 34 

Wages, prices and purchasing power 29 

Wage rates in American and English cities, 1870-96 283 

"War a failure," Democratic platforms, 1864 and 1900, declaring 346 

War Department, work of, reviewed 162 

War loan floated 174 

War revenue act, collections under 304 

War with Spain 44 

Webster, Daniel, on extension of Constitution 394 

"Wheat and silver theory" exploded 20 

Wheat crop, 1893-99 246 

Wheat, increased home consumption of, under protection 18. 249 

Wheat production, consumption and exportation 249 

Wilson law compared with Dingley law 197 

Wilson tariff, effect on coal industry 13 

Wilson tariff, effect on manufactures 12 

Wisconsin labor statistics 292 

Wool production, importation, consumption and prices 242, 244 

Wool, value of under low and protective tariffs 18 

Workingmen, effect of tariffs upon 27 

World's colonies 132 

World's commerce with silver standard countries 102 

World's monetary systems, by countries 320 



PREFACE 



Plan of the Volume Outlined— Suggestions to Those Desiring to 
Utilize it in the Practical Work of the Campaign. 



The purpose of this "Text Book" is to supply m convenient 
form for reference the official and statistical data which will 
enable speakers and writers to demonstrate the accuracy and 
wisdom of Republican principles and the inaccuracy and un- 
wisdom of those offered in opposition to them. The intelligent 
American voter demands facts in support of the j)ropositions 
upon which his vote is asked, and properly so. He is not satis- 
fied with mere noisy assertion or vituperation, as was clearly 
shown in 1896, when he rejected an enticing 1 currency proposi- 
tion after its fallacy and dangers were made plain to him. The 
result which followed that calm and thoughtful action by which 
free trade and free silver were rejected has been fully justified. 
The prosperity which followed a return to protection, when con- 
trasted with the adversity which followed the experiment with 
low tariff, needs only to be pointed out to justify the Republican 
principles of protection to American industry and to show the 
injurious effect of the Democratic theory of low tariff. 
The fact that, this prosperity came in the face of a refusal to 
accept the free coinage of silver, which was proclaimed 
as the real and only remedy for conditions which existed in 
189G, shows with equal clearness the inaccuracy of the currency 
propositions of the Democracy on that occasion. The fact that 
these propositions are being' again offered as the basis for their 
appeal for votes fully justifies the presentation of the official and 
statistical data which prove their unwisdom and inaccuracy, 
while the fact that those who are offering these once rejected 
and now disproved propositions now couple with them certain 
new issues and assertions gives additional reason that the 
public should realize the unreliability of their propositions and 
assertions. When a series of propositions made by a man or party 
is proved absolutely false, the voters are justified not only in 
rejecting these propositions when presented a second time, but 
also in scrutinizing closely any other statements emanating 
from the same source. 

The purpose of this series of official and statistical statements 
is, therefore, first, to prove the absolute inaccuracy of the asser- 
tions made by the Democracy and their Populistic allies in the 
past and to offer as this proof the actual experiences of our own 
people in recent years; and, second, to show from historical and 
official data that the assertions upon which they base their new 
issues of hostility to American progress are equally untrust- 
worthy. 

The tables and statements which are presented are intended 
to show; First, the depression which followed the low tariff 

1 



PREFACE. 

experiment made by the voters in 1892; second, the return of 
prosperity which followed the restoration of the protective sys- 
tem by the vote of 1896; third, the fact that this prosperity 
came without the adoption of the panacea of unlimited coinage 
of a depreciated money metal; fourth, the history of the war 
for the liberation of Cuba, which was entered upon at the de- 
mand of all parties; fifth, the issues growing- out of that war, 
and, sixth, a general review of the work of the Administration, 
department by department, during' the three years of which the 
record is now complete. 

In treating these questions an effort has been made to present 
in the opening pages in consecutive form the important facts, 
referring in each statement to the tables and official documents 
published in another part of the volume, from which additionr 
details may be obtained. This plan, while offering in outline 
the important facts which will be required by speakers and 
others, affords at the same time, by proper reference, opportunity 
for examination of the official documents and tables upon which 
these assertions are based, while the fact that the important 
tables and documents are themselves preceded by explanatory 
statement adds to the convenience of the work for immediate 
and constant reference. It is especially suggested, therefore, that 
the opening statement, pages 3 to 150, be carefully examined, 
since it points out by number and page the documentary and sta- 
tistical data which will be required for the discussion of the vital 
issues of the campaign. These tables and statements are, wher- 
ever possible, official, and in each case where practicable the 
authority is given. 

Necessarily a Text Book intended to be the constant compan- 
ion of speakers is limited in size, and many statements, official 
and otherwise, which would prove useful to those desiring to 
study in detail the questions to be discussed in the campaign 
could not be included in its proper limits. Many of these state- 
ments and arguments, however, have been brought together in 
a volume entitled "Pages from the Congressional Eecord," which 
includes, as its title indicates, a considerable number of the most 
important documents and speeches appearing in the Record 
of the proceedings of the first session Fifty-sixth Congress, which 
ended in June, 1900. This volume, which contains much useful 
material, has been thoroughly indexed and should be also in the 
hands of all those desiring to study the various phases of the 
questions to be discussed in the impending campaign. It may 
be had upon application to the Republican National Committee, 
and will form an extremely valuable addition to the material 
offered in this volume. 



FOUR GREAT FACTS. 

Four great facta seem to justify the Republican party in ask- 
ing- the voters of the United States to continue it in control of the* 
affairs of the Government. First, the promjitAess with which 
it has fulfilled the pledges of its platform upon which it suc- 
I cessfully appealed to the people in 1896; second, the prosperity 
which has come to all classes of our citizens with, and as a 
result of, the fulfillment of those pledges; third, the evidence 
which that prosperity furnishes of the fallacy of the princqjles 
offered bj r the opposing parties in 1S96 and still supported by 
them; and, fourth, the advantages to our country, our com- 
merce, and our people in the extension of area, commerce, and 
international influence which have unexpectedly come as an in- 
cident of the fulfillment of one of the important pledges of the 
platform of 1896, and with it the opportunity for benefiting the 
people of the territory affected. 

The purpose of this work is to indicate as far as practicable: 
first, the present i^rosperous condition and the evidence that it 
has come from the adoption of Republican principles and the 
rejection of those which the opposing parties offered in 1896; 
second, the benefits, present and prospective, to others and to 
ourselves through the additions made to our territorial control 
and influence resulting from the war undertaken at the demand 
of all parties in behalf of a suffering- people; third, the evidence 
that, the things done have been well done, and that the criticisms 
of methods employed which are being made for purely partisan 
purposes are unfounded and unjust; and,, fourth, that the at- 
tempts to array class against class, the employee against his em- 
ployer, and labor against that which furnishes it profitable and 
permanent occupation, are not supported by facts which war- 
rant a political party in inviting the dangerous results to the 
Republic which would follow antagonisms of this character. 

In attempting to supply the information which sustains these 
claims, statistical tables have been prepared showing- conditions 
during a term of years of the great industries of the United 
States, the value of its natural and manufactured products, and 
the earnings as far as practicable of those eng-aged in the great 
industries, their accumulations as shown by deposits in savings 
banks and other evidences of r>rosperity, the growth of interna] 
commerce is indicated by transportation, clearing>-house returns, 
and other great measures of commercial activity, the growth 
in foreign commerce and our ability under Republican methods 
to invade the markets of the world, and the relative condition 
of these great industries under Republican and Democratic pol- 
icies. These statistical tables, coupled with brief explanatory 
statements, have been so grouped as to render practicable a 
study of each subject, while further convenience in their 
examination is added by a copious index and by references in all 
text discussion to the pag*es on which the tables referred to can 
be found. 

Manj' general statements, valuable at times and places, which 
were utilized in former works of this character, have been omit- 
ted in the desire to present the great facts bearing upon present 
co7iditions in as concise and yet as complete form as possible, 
and to keep within convenient size this volume intended as a 
convenient and reliable book of reference to the active cam- 
paigner and editor. 



From the day our flag- was unfurled to the present hour, 
no stain of a just obligation violated has yet tarnished the 
American name. This must and will be as true in the future 
as it has been in the past. There will be prophets of evil and 
false teachers. Some part of the column may waver and wan- 
der away from the standard, but there will ever rally around 
it a mighty majority to preserve it stainless. — President Mc- 
Kinlty at University of Pennsylvania, Feb. 22, 1898. 



PROTECTION AND PROSPERITY vs. 
FREE TRADE AND ADVERSITY. 

Analysis of the Workings of Low and Protective Tariffs Re- 
spectively, Since 1790. Detailed Analysis of Working's of 
McKinley, Wilson, and Dingley Tariffs and Their Effect 
Upon FOUR GREAT CLASSES of our Population: The 
Farmer, the Workingnian, the Manufacturer, and the Busi- 
ness Man. 

Besults, not theories, are what the voter — be he farmer, toiler 
in the factory, manufacturer, or business man — wants. 

There are two ways of determining' the effect of great meas- 
ures or systems — first and most important, by taking a bird's- 
eye view of the commerce and finances of the entire nation dur- 
ing its entire history. The method ordinarily followed in at- 
tempting this is to examine our historical records and news- 
paper accounts of conditions in the various years in which the 
low or protective tariffs have been in operation. 

Protection vs. Low Tariff, 1789 to 1900. 

In addition to this, however, it is practicable to present in a 
single table the net results of protection versus low tariff, in 
the United States from the adoption of the Constitution down to 
the present time, as indicated by the prosperity of our com- 
merce and finances. A table on page 305 shows the total 
imports and exports and excess of imports or exports in each 
year from 1790 to 1900, and another table (pag*e 306) shows the 
receipts and expenditures and excess of receipts or expenditures 
of the Government in each year from 1790 to 1900; and with 
each of these tables is a statement showing the years in which 
low or protective tariffs, respectively, have been in operation. 
Following these are other tables showing the condition of our 
home industries under low and protective tariffs, respectively. 

Tariffs and Commerce. 

A study of the tables on pages 305 and 306, shows that 
protective tariffs have been in operation in the United States 
during practically one-half of the one hundred and ten years 
since the adoption oi' the Constitution. 

It will be seen that duaring the fifty-eight years of low tariff 
there were but ten years in which the exports were as great as 
the imports, and that during the entire fifty-eight years of the 
operation of low tariffs the net excess of imports over exports 
was $515,000,000. A study of the commerce of the protective tariff 
years shows that exports exceeded imports in twenty-seven of 
the fifty-two protective years, and that the net excess of exports 
over imports during that time was two and a half billion dollars. 
To put it in a single sentence, low tariffs, in fifty-eight years 
of operation, show a net excess of imports of $515,000,000, and 
protective tariffs, in fifty-two years of operation, show a net 
excess of exports of $2,500,000,000. Thus the protective tariffs 
of fifty-two years have paid the commercial debts of the fifty- 
eight years of low tariffs, amounting to half a billion dollars, and, 
in addition, placed two billion dollars to the credit of our ex- 
port trade. 

Excess of Exports During Three Years of the McKinley Ad- 
ministration. 

Another striking example of the growth of our export trade 
under protective tariff is found in the fact that the excess of 
exports over imports in the first three years of President Mc- 
Kinley's term, from March 1, 1S97, to March 1, 1900, was nearly 
four times as much .is Ihe entire excess of exports over imports 

4 



EXCESS OF EXPORTS UNDER PRESIDENT McKINLET. 5 

from ii'JO to the date of his inauguration, March 4, 1897, the 

accurate figures being" 

Excess of exports over imports from 1790 to March 

1, 1897 $383,028,497 

Excess of exports over imports from March 1, 1897, 

to March 1, 1900 1,483,537,049 

Tariffs and Revenue. 

The relative effect of low and protective tariffs, respectively, 
on the revenues of the Government is also readily seen by a 
study of the tables already mentioned. 

The table, entitled "Tariffs and revenues, 1790 to 1900," shows 
the deficit or surplus, respectively, in revenues in each of the 
low and protective tariff years. An examination of this table 
will show that all protective-tariff years, with the exception 
of those iu which expenditures were abnormally heavy on ac- 
count of war, show a surplus revenue, while twenty-four of 
the fifty-eight low-tariff years show a deficit, only three of that 
number being- at all affected by wars. Practically every pro- 
tective-tariff year, except those in which war conditions caused 
abnormal expenditures, shows a surplus, and it was under pro- 
tection and Republican rule that the enormous interest-bearing- 
debt of the United States was reduced from $2,221,000,000, at 
the end of the war (1865), to $585,000,000, when a Democratic 
President and low-tariff Congress took control of the Govern* 
ment; and before Democratic rule and low tariff had ceased 
to exist, the interest-bearing- debt had increased to $847,365,000, 
as will be seen by the table on page 317. 



The show windows have already contradicted the free trade 
writer and forced him to revise ms figures. — Maj. Wm. Mc- 
Kinley in New York, April 10, 1891. 

Free trade results in giving our money, our manufactures 
and our markets to other nations; protection keeps money, 
markets and manufactures at home. — Maj. McKinley at Bea- 
trice, Neb., August 2, 1892. 

Protection has vindicated itself. It cannot be helped by 
eulogy or hurt by defamation; it has worked its own demon- 
stration and presents in the sight of the whole world its 
matchless trophies. — Maj. McKinley at Beatrice, Neb., August 
2, 1892. 

You may try the system of protection by any test you will, 
I care not what it is, and it meets every emergency, it an- 
swers every demand. More than that, it has not been against 
the Government either in peace or in war. — Maj. McKinley at 
Niles, O., August 22, 1891. 

Our protective system was never in rebellion against the 
United States; it has always been for the Union and against 
its enemies whether at home or abroad; it has always sus- 
tained the flag of the country. — Hon. W. McKinley at Woon- 
socket, Conn., July 4, 1891. 

Call the roll of nations which are for protection. * * * 
At least 430 million people are in favor of protection and 38 
million Britons are against it; to whom must be added those 
Americans whose numbers are not known, who, while living 
under our flag, seem to follow another. — Maj. McKinley at 
Toledo, O., Feb. 12, 1891. 

We have been patriotic in every crisis of our history, and 
never more so than from April, 1898, to the present hour. 
But our patriotism must be continued. "We must not permit 
it to abate, but we must stand unitedly until every settlement 
of the recent contest shall be written in enduring form, and 
shall record a triumph for civilization and humanity. — Pres- 
ident McKinley at Red Oak, Oct. 13, 1898. 



A DISCUSSION OF THE EFFECT OF 
HIGH AND LOW TARIFFS UPON 
THE GENERAL BUSINESS CONDI- 
TIONS OF THE COUNTRY. 

As to the effect of the tariff upon the material prosperity of 
the country, the study is almost necessarily confined to later 
periods, because the census reports of the first half of the 
period, considered in the tables already referred to, are not 
sufficient^ elaborate to show in detail the growth of manu- 
factures. 

Growth in Textile Industries Under Protection. 

It is practicable, however, to consider the condition of the tex- 
tile industries at the middle of the century and by decennial 
periods thereafter and thus determine the condition which they 
had reached under the almost constant low tariff which prevailed 
prior to 1850 and the growth during- that further low-tariff period 
from 1850 to 1860, and to compare those conditions and growths 
with the protective period which has been constant since 1860, 
with the single three years' interruption from August 28, 1894, 
to July 24, 1897. 

The growth in number of establishments, employees, capital 
invested, and value of products of the wool, cotton, and silk 
manufacturing establishments and the dyeing and finishing 
works at each census year from 1S50 to 1890 is shown in a table 
on page 371. The value of the products of these four great groups 
(wool. cotton, silk and dyeing and finishing works) 
amounted in 1850, after the long period of low tariff, to only 
$128,000,000 and the number of employees to only 146,897; and 
during the ten years of uninterrupted low tariff from 1850 to 
1860 the value of the products had only reached $214,000,000 in 
1860, an increase of $86,000,000, and the number of employees had 
increased to 194,000, an increase of 48,000. The wages paid in 
these four industries in 1860, the last year under low tariff, 
amounted to but $40,000,000. 

In the next decade, under protection, the number of employees 
had increased to 275,000, with a growth of more than 100 per cent 
in wag-es and of 42 per cent in number of employees. At the next 
decennial census, that of 1880, the number of employees was 384,- 
000, an increase of more than 100,000; wages were $105,000,000, an 
increase of nearly $20,000,000, and the value of products, $532,000,- 
000, or more than double those of the last year under low tariff. 
By 1890, still another decade of constant protection, the wages 
paid had increased to $175,000,000, an increase of $70,000,000 paid 
to labor, while the number of employees had increased to 511,000 
and the value of products had increased to $722,000,000, or three 
and a third times that of the year 1860, which terminated the 
long low-tariff period. 

Growth in Prosperity, under Protection and Sound Money, 
since the '-crime" of 1873. 

Another table, prepared from official data, was presented 
by Secretary Gage at Chicago and Philadelphia, in addresses 
to great gatherings of those interested in the development 
of our productions and commerce, and was afterwards pub- 
lished in the '-Congressional Record" as an evidence of the 
growth of prosperity under protection and sound money. It 
shows that, while population has doubled from 1870 to 1899, 
all the other material interests have increased with far greater 
rapidity than population. Salaries paid in public schools, news- 
papers published, post-offices in existence and receipts of the 
Post-Office Department, telegraph messages sent, railways in 
operation, tonnage of vessels engaged in commerce on the Great 
Lakes, wheat produced and exported, cotton produced, manufac- 
( tired, and exported, coal, iron, and steel produced and exported, 

6 



THREE TARIFFS CONTRASTED. 7 

exports of manufactures, exports of the products of agriculture, 
money in circulation, total and per capita deposits in savings 
banks, and number of depositors — all show a growth greatly in 
excess of that of population. 

Comparison of Conditions under Presidents Cleveland and 

McKinley. 

Another table on page 237, shows business conditions during 
the first three years of President McKinley's Administration 
compared with the first three years of the Cleveland Adminis- 
tration. It shows a marked improvement in every line of com- 
merce, industry, and business conditions under President Mc- 
Kinley. 

Comparison of Conditions Under the McKinley, Wilson, and 
Dingley Tariffs. 

To come down to a later period in the study of the general 
effect of low and protective tariffs, attention is called to the 
tables showing imports, exports, circulation, prices, and other 
facts, as shown by the records of the Department of Agricul- 
ture, Treasury Department, Interstate Commerce Commission, 
and other branches of the Government service in the protective- 
tariff year 1892, the low-tariff years 1895 and 1896, and the pro- 
tective-tariff year 1899. It will be found that in the low-tariff 
years 1895 and 1896. conditions were far less favorable than those 
in 1892, the last year under President Harrison and the McKin- 
ley tariff, and in 1899, under President McKinley and the Ding- 
ley tariff. 

Business Failures Under Three Tariffs. 

Laying aside the question of general conditions and taking up 
that of the various classes of our citizens and business industries 
as shown by official records, the study is equally interesting and 
convincing as to the value of protection. Let us take, first, gen- 
eral business conditions during a long term of years as shown 
by the records of the Government and by accepted authorities 
in business lines. No better general index of commercial con- 
ditions is attainable than that showing failures and liabilities in 
each year for a long term of years, and this is presented on 
page 231. This table is prepared by Dun's Review, a generally 
accepted authority, which was widely quoted by Democrats and 
Populists in 1896 by way of sustaining their theories which 
were then presented to the public. 

This table shows that the number of failures in the calendar 
year 1892, the last year under President Harrison, was 10,344; 
in 1893, the first year under a Democratic President, was 
15,242, an increase of practically 50 per cent; and in 1896. the 
last year of Democratic rule, was again 15,08S. The amount of 
liabilities in 1892, the last year under President Harrison, was 
$114,000,000, and the amount in 1893, the first Democratic year, 
was $346,000,000, or more than three times as much as in the 
last Republican year; and that of 1896, the last Democratic and 
low-tariff year, was $226,000,000, while in 1899, under President 
McKinley, the liabilities dropped to but $90,000,000, or about one- 
fourth those of 1893, and the total number of failures was but 
9,733, against more than 15,000 in the last year of Democracy. 

Business Activity Under Three Tariffs. 

Take, again, the table on page 232, showing clearing-house 
returns of the United States in each year from 1880 to 1899. 
They are an index of the activity of business. It will be 
seen that the clearing-house returns of the entire countrv 
amounted to $60,000,000,000 in 1892, the last Republican year 
of the period, and had dropped to $45,000,000,000 in 1894, the 
yea*" in which the low-tariff law was enacted, and were less 
than $52,000,000,000 in 1S96; while in 1898, the first full vear 
under the Dingley tariff, they were $65,000,000,000, and in 1899 
were within a fraction of $89,000,000,000, or practically double 
those of the year in which the Wilson low-tariff law" was en- 
acted. 



S BUSINESS IMPROVEMENT SHOWN. 

Freight Carried on Railways. 

Take, again, the record of the railways of the United States, 
that accurate register of commercial activity, as shown by the 
table on page 236. The freight carried shows in 1894, the 
year in which the low-tariff law was enacted, a drop of 83,000,000 
tons, or more than 10 per cent of the entire business as compared 
with the year in which a Democratic President was inaugurated; 
while 1898, under McKinley and the Dingley law, shows an in- 
crease of 124,000,000 tons as compared with 1897, the year in 
which the Wilson low-tariff act was repealed, and an increase 
of 230,000,000 tons over the year in which the Wilson law was 
e ? a <?o Meantime tn e net earnings dropped from an average 

of $2,0(W per mile during several preceding vears to $1,800 per 
mile during the entire low-tariff period, and in 1898 again passed 
the $2,000 per mile line, being for that year $2,1.11 as the average 
earnings per mile of the railroads of the United States. 

Earnings of Railway Employees. 

The effect of this depression upon the employees under the 
low tariff is shown in Table No. 13, by which it will be seen 
that the number of men employed by railways fell in 1894, the 
year of the enactment of the Wilson law, nearly 100,000 below 
the number employed in 1893, while the earnings also showed 
a marked decrease. In 1898, the first full year under the Dingley 
tariff, the number of employees was, in round terms, 100,000 
greater than in 1894, and the amount paid in wages $50,000,000 
greater than in 1895, while the year 1899 showed an increase of 
149,000 employees over 1894 and '$75,000,000 increase in the wages 
paid, as compared with 1894 or 1S95. 

Business by Telegraph. 

Another evidence of the effect of the low-tariff period upon 
business is found in the table, which shows the number of 
telegraph messages sent over the lines of the Western Union 
Telegraph Company only from 1868 to 1899. It will be seen 
that the number dropped from 66,000,000 in 1893, the year of 
the inauguration of a Democratic and low-tariff President and 
Congress, to 58,000.000 in 1894, the year in which the Wilson 
law was enacted, and that during the entire low-tariff period 
from 1894 to 1897 the number remained stationary, at 58, 000, 000, 
increasing in 1898, however, to more than 62,000,000. 

Decrease of Mortgages. 

On the question of mortgages, of which we heard so much 
in 1S96, the single State of Nebraska reports that 
the value of mortgages filed in 1897, the first year under 
President McKinley, and the year in which the protective-tariff 
law was enacted, amounted to but $15,630,721, against $34,601,- 
318 in 1893, the first year under a Democratic President and 
low-tariff Congress, and $31,690,054 the year in which the low- 
tariff law was enacted, while the value of the mortgages re- 
leased in 1898, the first full year under the protective tariff, 
was $27,498,070 against $18,213,382 in 1896, the year of Mr. Bryan's 
nomination. 

Land Sales and Homestead Entries. 

Another table shows the money received from the dis- 
posal of public lands by the General Land Office. These re- 
ceipts fell from more than $4,000,000 in 1892 and 1893 to $1,847,- 
000 in 1896, and $1,596,000 in the fiscal year 1897, all of which 
was under the low tariff, w r hile in 1898, the first fiscal year 
under the Dingley tariff, they had increased to $2,144,000, and 
in 1899 to $2,594,000. 

Still another table, which indicates the number of final 
homestead entries made at the General Land Office, shows 
that the total number in the fiscal year ending June 30, 1893, 
practically all of which was under President Harrison, was 24,204. 
and the number of acres granted* 3,477,231. In the fiscal year 
1894 the number fell to 20,544, and in 1896 to 20,099, with a total 
number of acres of 2,790,242, increasing to 22,281 in number and 
an acreage of 3,095,017 in the fiscal year 1898. 



BUSINESS IMPROVEMENT SHOWN. 9 

The Postal Barometer of Business. 

Another table (page 265), showing* business conditions, is 
quoted by the Postmaster-General in his recent annual report, 
in which he says: 

"The course of the postal revenues furnishes an unerring- ba- 
rometer of the business conditions of the country." 

He then quotes the receipts, expenditures, and deficits of the 
Post-Office Department from 1893 to 1899, showing that the re- 
ceipts in 1894, notwithstanding- the steady growth in popula- 
tion, actually fell below those of tKe fiscal year 1893, practically 
all of whieh was under President Harrison, and that during the 
entire Democratic and low-tariff period the growth in receipts 
was but very small, the total receipts in the year ending June 
30, 1893, being $75,896,933, and in the year ending June 30, 1897, 
$82,665,462, an increase in the four years of less than $7,000,000' 
while m the two years from June 30, 1897, to June 30, 1899' 
the increase was more than $12,000,000, the receipts for the fiscal 
year 1899 being $95,021,384. The deficit of the Department, 
which, in the fiscal year 1893, the last year under President Har- 
%!£?* » *** $5 ' 1 . 77 ' 171 ' amounted, in the year ending June 30, 
1897, all of which was under the low tariff, to $11,411,779 and 
dropped again under protection and the business activity which 
accompanied it to $6,610,776 in the year 1899. 



Bank Deposits. 

Another measure of general business conditions is found by an 
examination of the deposits in savings and other banks of the 
United States. The deposits in national banks fell from 
$1,771,000,000 in 1892, President Harrison's last vear, to 
$1,574,000,000 in 1893, a reduction of $200,000,000, and 
that in the last year of the Democratic term they were 
but $1,686,000,000, increasing to $1,768,000,000 in 1897, $2,078,000,- 
000 in 1898, and $2,605,000,000 in 1899— an increase of more than 
a billion dollars in 1899 as compared with 1893. 

State banks also show an equally remarkable record, their 
total deposits in 1899 being almost double those of 1894. Loan 
and trust companies show in 1899 deposits amounting to $835,- 
000,000, against $471,000,000 in 1894. Savings banks show a re- 
duction of $31,000,000 in their deposits in 1894 as compared with 
June 30, 1893, while those of June 30, 1899, are $305,000,000 greater 
than for June 30, 1894. Taking the record of all classes of banks 
— national, State, loan and trust companies, savings banks, and 
private banks — the total deposits on June 30, 1899, were $6,853,- 
381,000, against $4,667,930,328 in 1894, the year of the enactment 
of the Wilson law, an increase of more than $2,000,000,000, or 
almost 50 per cent., and practically all of this increase occurred 
after the election of President McKinley and a protective-tariff 
Congress. 

A table on page 233 shows the details of savings banks, and one 
on page 234 compares the savings banks of the United States 
with those of the other principal countries of the world. It will 
be seen by this last-mentioned table that the average deposit 
in the United States is larger than that of any other country, 
and the total deposits double those of any other country named 
in the list. Details of the conditions of the banks and deposits 
in banks in each State in 1896 and 1899, also shown by another 
table, present interesting facts in reference to the growth of 
business interests and deposits in banks in all parts of the coun- 
try in 1899 as compared with 1896, the year of the last Presiden- 
tial campaign. 

Money in Circulation Under Low and Protective Tariffs. 

Another recent evidence of the effect of low and protective 
tariffs on the money in circulation is found in the table on 
page 274, which shows the amount of money of various classes in 
circulation 1 in the United States for a term of years, extend- 
ing back to the beginning of the protective period — 1860 — which 
precedes the "crime" of 1873. It shows the steady growth in 
the amount of money in circulation up to and including 1 1892, 



10 BUSINESS IMPROVEMENT SHOWN. 

the last year under President Harrison, then a steady fall until 
1896, and again an increase up to the present time. 

The per capita money in circulation in 1892, the last year un- 
der President Harrison, was $24.44. By 1896 it had dropped to 
$21.10, and in spite of the prediction of the campaign of that year 
that it could not increase without the free and unlimited coinage 
of silver and the retention of a low tariff, it has, under McKi'u- 
ley, the protective tariff, and the gold standard, increased to 
$26.50 per capita on July 1, 1900, an increase of 25 per cent in 
the per capita circulation, of, 25 per cent in the total money in 
circulation, and of 64 per cent in the gold and gold certificates 
on July 1, 1896, the date of Mr. Bryan's nomination, being $497,- 
000,000, and on July 1, 1900, $815,474,460, while the total money 
on July 1, 1896, was $1,506,434,966, and on July 1, 1900, $2,- 
062,425,496 — and all without the "free and unlimited coinage of 
silver." A table on page 234 shows the money in circulation 
at the beginning of each month since Mr. Bryan's nomination 
in 1896. It will be seen that there has been a marked increase in 
every class of currency in circulation, comparing July 1, 1900, 
with July 1, 1896. 



There must be no scuttle policy.— President McKinley to 
Notification Committee, July 12, 1900. 

The prophet of evil no longer commands confidence, because 
he has been proved to be a false prophet.— President McKin- 
ley at Wahpeton, N. D., Oct. 13, 1899. 

The country is altogether too busy with active industry 
and thriving commerce to listen any longer fro the prophet 
of evil.— President McKinley at Superior, Wis., Oct. 13, 1899. 

The future is now our field; let us look to it; it opens with 
glorious possibilities and invites the party of ideas to enter 
and possess it. — Maj. McKinley at Dayton, 0., October 18, 
1887. 

The American people are not fooled but once on a subject, 
for once deceived, they never follow the deceiver a second 
time. — Maj. McKinley to Travelers' Republican Club, Sept. 
26, 1896. 

Free trade is the voice of interest and selfishness in prin- 
ciple; protection is the voice of intelligent labor and devel- 
opment. — Hon. W. McKinley, in House of Representatives, 
April 6, 1882. 

I am opposed to free trade because it degrades American 
labor; I am opposed to free silver because it degrades Ameri- 
can money. — Maj. Wm. McKinley to Homestead workingmen, 
Sept. 12, 1896. 

The American people hold the financial honor of our Gov- 
ernment as sacred as our flag, and can be relied upon to guard 
it with the same sleepless vigilance. — Maj. McKinley to the 
1896. 

Honest industry never comes in for any part of the spoils 
in that scramble which takes place when the currency of a 
country is disordered. — Maj. McKinley to New York State 
delegation, September 22, 1896. 

It is sometimes hard to determine what is best to do, and 
the best thing to do is oftentimes the hardest. The prophet 
of evil would do nothing because he flinches at sacrifice and 
effort, and to do nothing is easiest and involves the least cost. 
On those who have things to do there rests a responsibility 
which is not on those who have no obligations as doers. — 
President McKinley at Boston, Feb. 16, 1899. 



A DISCUSSION OF THE EFFECT OF HIGH 
AND LOW TARIFFS UPON THE MANU- 
FACTURERS OF THE COUNTRY. 

Let us next consider the effect of the protective system upon 
our manufacturing- industries. The most satisfactory way of 
measuring- the growth of these various industries is through 
the census figures. These., however, are gathered out once in ten 
years, and the latest details of this character, therefore, relate 
to conditions in the year 1890. This material has been so thor- 
oughly discussed from time to time, that the facts relative to the 
wonderful progress in manufacturing, as shown by the decen- 
nial inquiries, are already well known to the people. 

The census of 1S90 showed the number of employees in the 
manufacturing industries of the United States in that year to 
be 4,712,622, against 2,732,595 in 1SS0, an increase of 1.980,000. 
or nearly 75 per cent., and the wages in 1S90 were $2,283,216,529. 
against $947,953,795. an increase of SI. 335, 000,000. or 141 pel' cent. 
It is particularly interesting to note that the per cent, of in- 
crease in wages paid in 1S90 was nearly double the per cent, of 
increase in number of persons employed, thus showing an aver- 
age increase in the individual earnings of employees during thp 
decade, as well as a great increase in the number employed, 
while the value of the products manufactured was in 1890 $9.- 
437,283, against $5,369,579,199 in 18S0— an increase of $3,957,858,084. 
or nearly 75 per cent. The population during the same period 
increased 25 per cent., while manufactures increased 75 per 
cent., thus indicating that the manufacturers were in 1890 sup- 
plying a much larger proportion of the consumption of the peo- 
ple of the United States than in 1880. During the same time im- 
portations of articles manufactured ready for consumption in- 
creased only $24,000,000, or 17.5 per cent., while population 
was increasing 25 per cent., thus indicating that during the 
decade for which we have accurate figures of both domestic 
manufactures and imports the manufacturers of the United 
States rapidly increased the proportion which they were sup- 
plying of the home consumption of manufactured goods. 

Growth of Manufactures. 1890 to 1900. 

There are three methods by which it is practicable to measure 
in some degree the growth of domestic manufactures in the de- 
cade just ending, and for which there are as yet no census fig- 
ures. One of these is to study the increase in the importation 
of the classes of raw material which manufacturers must use. 
TYIhile our manufacturers naturally utilize home materials as 
far as practicable in their industries, there are certain materials 
which they require which are not produced at home, while in 
others the supply from home production is not sunicient to meet 
their requirements. In crude rubber and silk, for instance, all 
of the materials utilized must be imported, while in the vege- 
table fibers, such as hemp, flax, and certain high grades of cot- 
ton, hides and skins, and other articles of this class, they are 
compelled to draw a part of their supplies from abroad. By 
following the course of importation of these "manufacturers' 
materials," or, to use the technical term of the Bureau of Statis- 
tics of the Treasury Department, "articles in a crude condition, 
which enter into the various processes of domestic industry. v it 
is practicable to measure in some degree the activities of our 
manufacturers since 1S90. 

Increased Imports of Manufacturers' Materials. 

A table printed on another page shows the importation 
of this class of manufacturers' materials, the importation of 
manufactured goods, and the exportation of manufactured goods. 

11 



12 PUOSI'EBITY OF MANUFACTUBEBS. 

It will be seen from an examination of this table that manufac- 
turers' materials imported in 1890 amounted to $178,435,512, or 
23 per cent, of the total importations, while in the fiscal year 
1900 the importations of- this same class amount to 
$310,000,000 and form 35.8 per cent, of the total importations. 
It is thus apparent that our manufacturers are to-day drawing 
from abroad fully twice as much material for use in manufac- 
turing as they did a decade ago, since the actual value is nearly 
double that of 1890, while it is a well-known fact that prices 
of manufacturers' materials are now much less than those of a 
decade ago and that a given number of dollars now represents 
a larger quantity than at that time. It is especially gratifying to 
note that this class of material, that required by manufacturers, 
now forms nearly 36 per cent, of the total imports, against 23 
per cent, in 1890. 



Increased Exports of Manufactures. 

Still another evidence of the activity of manufacturers is found 
in a column of the same table), where the values of man- 
ufactures exported is shown. In the fiscal year 1890 exports of 
domestic manufactures amounted to but $151,000,000, and in the 
fiscal year 1900 to $432,000,000— an increase of nearly 200 per 
cent. 

Decreased Imports of Manufactures. 

Meantime, importation of manufactures has been greatly re- 
duced, having been, in 1890, $346,078,654, and forming 44.8 per 
cent, of the total imports, while in 1899 it was but $259,862,721 
and formed but 37.9 per cent, of the total imports. 

Thus, in the study of imports of manufacturers' materials and 
the imports and exports of manufactured goods all the available 
data show a phenomenal increase in our manufacturing indus- 
tries during the decade 1890-1900, in which we must depend 
chiefly* upon these data in determining the growth of manufac- 
tures. A study of the period shows, first, an increase of nearly 100 
per cent in imports of manufacturers' materials; second, an in- 
crease of 180 per cent, in the exports of manufactured goods, and 
third, a decrease of 25 per cent, in the imports of manufactured 
goods; while manufacturers' materials form every year a larger 
proportion of the total imports, and manufactured goods form 
every year a smaller proportion of the imports; and, on the other 
hand, manufactured goods form every year a larger proportion 
of the total exports. 



Effect of Wilson Tariff on Manufacturers and Their Employees. 

Before leaving this statement, which shows the imports of 
manufacturers' materials and the imports and exports of fin- 
ished manufactures, it is proper to call attention to the disas- 
trous effect of the low tariff of 1894-1897 upon the manufacturing 
industries as measured by the imports of raw materials and the 
imports and exports of finished products. It will be seen 
by the table on page 268 that, despite the claim of the 
supporters of the Wilson law that their measure would 
especially benefit manufacturers by giving them free raw 
material, the importations of raw materials in the years 
ending June 30, 1895, 1896, 1897, all of which were under the low 
tariff, averaged less than those of the fiscal year 1893, all of 
which was under the McKinley protective tariff and most of it 
under President Harrison, and that the years ending June 30, 
1899 and 1900, under the Dingley law, show a larger importa- 
tion than that of any year under the Wilson low tariff, the im- 
portation of raw material in the year 1900 being 50 per cent, 
greater than the annual average importation of raw material 
tinder the Wilson law, and the share which raw material formed 
of the total imports was, in the year 1900, 36 per cent., against 
an average of 26 per cent, during the entire period that the Wil- 
son law was in operation. 



- I BIPI'IM . H OF IM'l >! Kll 

Jn exports of manufactures the increase under Dingley pro- 
tection over that of Wilson low tariff, with its enforced kite 
of factories, is equally striking. The exports of manufactures 
in the three fiscal years during which the Wilson law was in 
operation averaged $230,000,000 per annum, while for the year 
as already" indicated, they were 8432,000,000. 

Still another important indication of the prosperity or re- 
J on of manufactures under protection and low tariffs, 
respectively, is found in a comparison of the imports of manufac- 
tures with the exports of manufactures. A comparison of the 
figures in the import and export columns of manufactures 
shows that the exports of manufactures exceeded the 
imports of manufactures in the fiscal years. 1898, 1S99 and 
1900, all of which were under the Dingley tariff law, while in 
preceding years imports of manufactures had always exceeded 
exports of that class of merchandise, the reverse condition be- 
ing due to the steady reduction of imports and the steady in- 
crease of exports of manufactured goods. 

An opportunity for comparison of the imports and exports 
of manufactures in each year from 185S to 1899 is given by 
another table, which shows that the exports of manufactures 
have more than trebled during that period, while import 
manufactures have fallen off 30 per cent. 



Our Growth in Manufacturing Compared With That of Free- 
Trade England, as Indicated by Coal Consumption. 

Three great industries — coal, iron, and tin plate — have made 
especial progress under the development of our manufacturing 
system, coal production being of itself a measure of the devel- 
opment of manufacturing, since coal enters so largely into that 
industry. A table, page 303. shows the growth in coal produc- 
tion in free-trade Great Britain compared with that of the pro- 
tection countries — United SI many, and France: also the 
total coal production of the world and the per cent supplied 
by the United S quinquennial peri* 'Is froi 

It will be seen by an examination of this table that the coal 
production of the United Kingdom during the thirty years under 
[deration, during all of which time that country has been 
under a low tariff, only increased from 115.000,000 tons to 

r a little less than 100 per cent, while Germany, 
which adopted a protective tariff about the middle of the period 
under consideration, has increased her coal output from 36,000,- 
000 tons to 144.000.000 tons — a growth of 300 per cent. France, 
also a protection country, increased her output from 14,6 
tons in 156^ to 1 tons in 1898, an increase of 150 per cent, 

while the United States, which has been constantly under a pro- 
tective tariff law during that period (with the exception of three 
years), increased her output from 31.64S.960 tons in 1868 to 

50 tons in 1899 — an increase of over 700 per cent. It must 
be remembered, in addition to this, that the United States has 
consumed in her factories, on her railways, and anions: her peo- 
ple practically all of this enormous ii our exports of coal 
averaging less than 3 per cent of our total production, while 
Great Britain has been for years a large exporter of coal. 



Effect of the Wilson Low Tariff on the Coal Industry and on 
Labor Employed at the Mines. 

Another table shows the details of coal production in r he 
United States from 1880 to 1699. indicating the quantity 
mined. value of the product, the price per ton at the mines, the 
number of employees, and the average number of days in which 
they were employed in each year, the imports and expor- 
eoal and the per cent of the world's production supplied by the 
United 

An examination of this table will show the effect of the low- 
tariff period upon the coal production aud coal producers- the 
workingmen in the mines of the Unite.] States numbering a half 
million toilers. The production in 1894, the year in which the 
low tariff was enacted, fell to tons as against 182,- 



14 COAL, IRON AND ST JOEL IN THE UNITED STATES. 

000,000 in the preceding year, and the value of the product fell 
from $208,000,000 in 1893 to $186,000,000 in 1894, a loss in a single 
year of $22,000,000 in this one article in which labor forms so 
important a part of its value. 

A study of the number of men employed at the mines shows 
little change during- the low-tariff period; but an examination 
of the column showing the number of days in which they were 
active discloses the effect of the low tariff upon the laboring men 
in that great industry. In 1891, under protection and the ac- 
tivity of the gTeat industries of the country, the average number 
of days in which the men in the coal mines of the United States 
were employed was 223. In 1893, the year in which a low-tariff 
President and Congress came into power, the number of days 
in which the miners were employed dropped to 201, and in 1894 
dropped again to 178; while in 1897, the last year of the Wilson 
tariff, the number was but 179, a reduction of 20 per cent in 
the time in which they were employed as compared with 1891. 
The figures for 1898 show a marked increase in the number of 
days employed and an increase of 38,000 men as compared with 
1893; while it is apparent that the figures for 1S99 will, when 
completed, show a much larger increase, since the product in 
1899 was 39,000,000 tons greater than in 1898, and S8, 000,000 
greater than in 1894, an increase of nearly 50 per cent in pro- 
duction and 39 per cent in value of the product. 



Development of Iron and Steel Manufacture Under Protec- 
tion — Increased Production and Lower Prices. 

The growth in the production of iron and steel in the United 
States from 1880 to 1899 is shown in a table on page 264. Pig-iron 
production in the United States has increased from 3,835,191 
tons in 1880 to 13,620,703 tons in 1899, which year placed the 
United States at the head of the iron and steel producing na- 
tions of the world. An examination of this table will show the 
effect of the Democratic low-tariff period — 1893-1896 — upon this 
great industry. The pig-iron production of 1892 was 9,157,000 
tons. In 1893, the year of the inauguration of Democracv and 
low tariff, it fell to 7,124,000 tons; in 1894 to 6,657,000 tons, and 
in 1896 was but 8,623,000 tons. The year 1897, in which protec- 
tion was again adopted, showed an increase to 9,652,680 tons, 
and in 1899 an increase to 13,620,703 tons. Thus the fall from 
the last year of President Harrison to 1894, the year in which 
the low tariff was enacted, was 2.499,622 tons, or 27 per cent, 
while the increase of 1899 over 1896, the last full year under a 
low tariff, was 4,997,576 tons, or 57 per cent. 

The reduction of prices noted in the column showing the price 
of steel rails during the period under consideration is also ex- 
tremely suggestive, answering, as it does, the assertion that 
sufficient competition to keep prices at a minimum can only be 
obtained by a low tariff. It will be seen from an examination 
of this column that the average annual price of steel rails during 
the period of protection from 1880 to 1893 fell from $67.50, in 
1880, to $28.12, in 1893. In 1894, the year in which the low tariff 
was adopted, there was a fall of $4 per ton, but the price returned 
to $28 in 1896 — dropping to $18.75 in 1897, the year in which 
the protective tariff was again adopted, $17.62 in 1898, and re- 
turned in 1899 to $28.12, the figure at which it stood in 1893 
and 1896. , 

Another illustration of the tremendous growth of our iron and 
steel industry during this long protection period is found in the 
columns of this table, showing the imports and exports of manu- 
factures of iron and steel in each year from 1880 to 1898. It 
will be seen that under this long period of protection and the 
development of the manufacturing industries which accompa- 
nied it, the imports of iron and steel fell from $71,266,699 to 
$12,100,440, and that, the manufacturers, besides supplying the 
enormous addition to the home market which this reduced im- 
portation implies, also increased their exportation of iron and 
steel manufactures from $14,716,524 in 1880 to $93,716,031 in 1899, 
and in the year 1900 to more than eight times that of 1880. 



TIN PLATE IN THE UNITED STATES. 15 



Our Growth in Iron and Steel Manufacturing, Compared With 
That of Free-Trade England. 

The relative growth of the iron and stee] industries in the pro- 
tection swkJ non -protection countries, respectively, is another 
illustration of the advantages of the protective system. Greal 
Britain, whose fame as a producer of iron and steel isw orhl-w idc, 
has only increased her output during that time from 5,963,515 
tons in 1870 to 9,305,319 tons in 1899, an increase of 56 per cent, 
while France under a protective tariff, has increased her output 
during the same time from 1,178,114 tons to 2,567,388 tons, an 
increase of 117 per cent, and Russia, also a protection country, 
has increased her output from 359,531 tons in 1870 to 2,222,469 
in 1898, an increase of 520 per cent. Germany, under vigorous 
protection, has increased her output of pig iron from 1,391,124 
tons in 1870 to 8,142,017 tons in 1899, an increase of 485 per 
cent, while the United States, with a thoroughly protective tariff, 
increased her output from 1,665.179 tons in 1870 to 13,620,703 
Ions, in 1899, a gain of 11,956,000 tons, or 718 per cent. 

The relative production of Bessemer steel ingots and rails in 
the United States and in Great Britain since 1868, shows that 
the growth in the United States has been enormous as compared 
with that of free-trade Great Britain, the increase in ingots 
in the United States being from 7,589 tons in 1868 to 7,586,354 
tons in 1899, while that of Great Britain increased from 110,000 
tons in 1868 to 1,825,074 in 1899. In Bessemer steel rails the 
growth in production has been equally striking. The figures 
of production of crude steel of all hinds in the United States 
and" in Great Britain from 1873 to 1899, shows that the increase 
in the United States has been from 198,798 tons in 1873 to 
10,639,857 tons in 1899, while that of Great Britain was from 
653,500 tons in 1873 to 5,000.000 tons in 1809. 



Tin Plate — Home Manufactures Increased, Imports Decreased, 
and Prices Reduced by Protection. 

Still another striking evidence of the growth of our manufac- 
tures under protection is found in the facts presented by the 
tables, which show imports, home manufactures, and prices 
of tin plate in the United States under the protection established 
by the McKinley law. Importation of tin plate before the 
establishment of the protective du+y ranged in the vicinity of 
650,000,000 pounds, the amount of money sent annually abroad for 
this article being over $20,000,000. The McKinley law, which went 
into effect October 1. 1S90, placed a thoroughly protective duty 
on tin place, of which there were no manufactures in this coun- 
try at that time. Bj- 1892 the production amounted to over 13,- 
000,000 pounds, by 1894 to 139,000,000 pounds, by 1S96 to 307,000,- 
000 pounds, by 1898 to 6*1.000,000 pounds, and in 1899 to 791,- 
000,000, or more than was ever imported in a single year except 
that of 1891, in which there was an excessive importation in 
order to evade the duties established by the McKinley Act. 
Meantime importations have fallen until they amounted to but 
3 08 00.000 pounds in 1899, and the amount of money sent abroad 
for ihis article was but $2,613,000. against $21,222,653 in .1889. 



Jac cent Increase in Price of Tin Plate Much Less Than in That 
of the Raw Material Used. 

An examination of the prices of Bessemer steel plates 
■ n the New York markets since the establishment of 
the industry in the United States also reveals some 
interesting facts. It shows that the price in 1893, the 
second year of production under the protective tariff, was 
$5.04 per box; that it fell steadily year by year until it reached 
$3.52 per box in 1896, a reduction " of 30 per cent. In 1899 the 
average price was $4.51 per box, and on April 20, 1900, $4.84 per 
box. This increa.se from $3.52 per box in 1896 to $4.85 in 1900 
has been the subject of much criticism, and led to a charge that 
the increase was an arbitrary one caused by combinations of 



16 GROWTH OP COTTON MANUFACTURING. 

the tin-plate manufacturers of tlie country. Ajl examination of 
the prices of tin and steel billets, the chief constituents 
of tin plate, discloses some interesting- facts. Straits tin 
increased from 13.3 cents per pound in New York in 1896 to 
31 cents in 1900, the period in which the advance in tin plate 
occurred, while the price of steel billets increased from $15.08 
per ton in 1897 to $37 on April 20, 1900, thus showing an increase 
of more than 125 per cent on the articles entering- into the manu- 
facture of tin plate, while the advance in the price of the finished 
article was but 38 per cent. 



The Cotton Industry. 

The growth of the cotton manufacturing industry, which has 
already been referred to, is also illustrated by a table on page24G, 
which shows the cotton production and manufacture in the 
United States, the reduction in imports, and increase in domestic 
manufactures and exports from 1883 to .1899. It will be seen 
that the number of bales taken by Northern mills increased from 
1,759,000 in 1883 to 2,217,000 in 1899, and those of Southern mills 
from 313,000 in 1883 to 1,415,000 in 1899, making a total increase 
from 2,072,000 to 3,632,000 during the time under consideration. 
Meantime the exportations of manufactures of cotton increased 
from $13,721,605 in 1883 to $23,506,911 in 1899, and imports fell 
from $38,036,044 in 1S83 to $32,054,434 in 1899. An important fact 
as to the effect of the low tariff upon the manufacturing in- 
dustries is shown by a study of the consumption of cotton by 
the mills of the United States year by year during that part 
of the period under consideration. In 1892, the last year under 
President Harrison, the number of bales taken by the mills of 
the United States was 2,856,000. In 1893 the number dropped to 
2,375,000 and in 1894 to 2,291,000. In 1896 the number was 2,50.5,- 
000, and in 1898, the first full year under the Dingley protective 
tariff, it increased to 3,465,000, and in 1899 was 3,632,000, an in- 
crease of 60 per cent in 1899 as compared with 1894. 



Wo party necessity is great enough to force its adherence 
against its country's best interests.— Hon. W. McKinley in 
House of Representatives, May 18, 1888. 

There is no use in making a product if you cannot find some- 
body to take it. The maker must find a taker. — President 
McKinley, in speech to Manufacturers' Club, Philadelphia, 
June 2, 1897. 

The best statesmanship for America is that which" looks to 
the highest interests of American labor and the highest de- 
velopment of American resources. — President McKinley at Su- 
perior, Wis., Oct. 12, 1899. 

The people are doing business on business principles, and 
should be let alone — encouraged rather than hindered in their 
efforts to increase the trade of the country and find new and 
profitable markets for their products — President McKinley, at 
Richmond, Va., Oct. 31, 1899. 

There can be no imperialism. Those who fear it are against 
it. Those who have faith in the republic are against it. 
Our only difference is that those who do not agree with us 
have no confidence in the virtue or capacity or high purpose 
or good faith of this free people as a civilizing agency. — Presi- 
dent McKinley before Ohio Society of New York, Mar. 3, 1900. 

Half-heartedness never won a battle. Nations and parties 
without abiding principles and stern resolution to enforce 
them, even if it costs a continuous struggle to do so, and 
temporary sacrifice, are never in the highest degree successful 
leaders in the progress of mankind. — President McKinley be- 
fore National Association of Manufacturers, New York, Jan. 
27, 1898. 



A DISCUSSION OF THE EFFECT OF 
HIGH AND LOW TARIFFS UPON THE 
FARMERS OF THE COUNTRY. 

The farmer has shared with the business man, the manufac- 
turer and his workmen, the railways and their employees, and 
the various classes of our citizens, in the general prosperity fol- 
lowing" the return to protection. His markets have increased 
both at home and abroad, and with this increase have come ad- 
vanced prices for what he sells and advanced value of that which 
he retains. Not only do the figures of exports show a marked 
increase in his receipts from abroad, but in the home market, by 
far the most important to him, prices have advanced, consump- 
tion and demand increased, and with these has come prosperity 
to this greatest class of producers. 

On all farm products the rate of duty was reduced 
by the Wilson tariff, and in most cases that of the 
McKinley tariff was restored by the Ding-ley tariff. This increase 
has had its effect in checking' the importation of manufactured 
articles of farm production, and thus has saved to the farmers 
a share of the home market. 

Decreased Importation of Farm Products Under the McKinley 
and Dingley Laws. 

A table, prepared by the Department of Agriculture, 
shows the imports of agricultural products from 1894 to 1899. 
It shows that there was a marked decrease in the importa- 
tion of farm products immediately following" the repeal of the 
Wilson Jaw, which occurred in July, 1897, the imports of the year 
ending June 30, 1897, having thus come entirely under the Wftl- 
son Act. The total imports of agricultural products, as classified 
by the Department of Agriculture, was, in the fiscal year 1897, 
$400,871,468; in 1898, under the Dingley law, it dropped to $314,- 
291,790, and in 1899 was $355,514,S81. This gives an average re- 
duction of over $60,000,000 a year in agricultural imports in 
1898 and 1899 as compared with 1897. 

Many single instances might be cited to show the reduction in 
individual classes of articles, but as a single example will be all 
that is required for this purpose. An examination of the import 
figures of the Bureau of Statistics, shows that prior 
to the enactment of the McKinley law, which placed 
a duty upon egg-s entering into the United States from 
abroad, the valuation of the importations ranged from two mil- 
lion to two and a half million dollars per annum, being in the 
fiscal year 1889 $2,418,926 and in the year 1890 $2,074,912. Imme- 
diately following the enactment of that law the importations fell 
greatly, and in the year 1894, the last year of the Mc- 
Kinley law, amounted to only $199,536, or but 10 per cent, of the 
average in the years preceding* its enactment. The Wilson law, 
however, reduced the duty on eggs from 5 cents to 3 cents per 
dozen, and in 1895, the first year of its operation, the importa- 
tions increased to $324,133 in value. The Dingley law restored 
the rate of duty to 5 cents per dozen, and in 1898 the value of 
importations again dropped to $8,078, and in the fiscal year of 
1900 averaged about $1,700 per month, or a trifle above $20,000 
per year, as against an average of over $2,000,000 per annum be- 
fore a duty was placed against this article of foreign production. 

Improvement of the Home Market Under Protection. 

It is in the improvement of the home market, however, that 
the farmer's chief benefit from protection is found. With gen- 
eral prosperity in manufacturing, in mining", in transportation, 
and in all lines of business, the consumption among all classes 
of consumers is increased, while with the decreased uctivity, 

17 • 



18 PROTECTION IMPROVES THE HOME MARKET. 

silent mills and factories, employees on half pay or without 
earnings, the decrease in consumption is very great and the 
farmer thus becomes the chief sufferer. This fact is clearJy 
shown by a (able on page 241, taken from the Statistical Ab- 
stract, w'hirh shows I lie aiuoiinl orf certain articles retailed f«tt 
• on .imipliuii lor each individual in fche United Stairs for varum 

from h'i I to 1-898. This lahle, which has been published 
for a long" term of years, is a generally accepted authority on 
matters of this character. A single example, that of wheat, will 
be sufficient to illustrate the effect of the depression or pros- 
perity accompanying low or protective tariffs upon home con- 
sumption. 

Prior to the election of 1892, and the depression which imme- 
diately followed it, the amount of wheat retained for consump- 
tion in the United States was about 6 bushels per 
capita. On some occasions it exceeded that figure, be- 
ing in 1883 and 1885 more than Oy; bushels per cap- 
ita, and seldom falling below 5% bushels. In the year 
1893, however, during the depression which immediately followed 
the election of a Democratic President and a free-trade Con- 
gress, the per capita wheat consumption fell to 4.85 bushels, in 
1894 to 3.41 bushels, and in 1897 was 3.88 bushels. No year in the 
entire term covered by this table shows so small a consumption 
of wheat per capita as does either of these years 1894 and 1897, 
for it should be kept in mind that the Wilson tariff was not re- 
pealed until after the close of the fiscal year 1897. Immediately 
following the repeal of that act there was a marked increase 
in the per capita consumption, and in 1899 it had again about 
reached its normal figure, being for that year 5.95 bushels per 
capita. 

Another example may be found in the amount of cotton re- 
tained for consumption under protective and low tariffs, respec- 
tively. In the years 1891 and 1892 the amount of domestic cotton 
retained for consumption was, respectively, 22 and 24 pounds per 
capita, while in 1893 it fell to 17 pounds, per capita. In 1894 it 
was 16 pounds, and in 1896 and 1897, 18V 2 pounds, increasing, 
however, in 1898, under protection, to 25.2 pounds, and in 1899 
to 27.1 pounds, or 50 per cent, more than the average during the 
entire Democratic free-trade term from 1893 to 1897. 

Value of Farm Products Under Low and Protective Tariffs, 
Respectively. 

It is not necessary to multiply illustrations to show the re- 
duced consuming power of our people under the depression 
which accompanied low tariffs, but some figures prepared by the 
Department of Agriculture, showing the value of the crops and of 
farm animals in each year during a long' term of years, indicate 
something of the tremendous losses to the farmer which accom- 
panied and were the legitimate fruit of the low-tariff experi- 
ment of 1893-1897. 

Sheep and Wool Values Reduced. 

Take first the single item of wool. The Wilson law, as is well 
known, gave the country in the item of wool an example of the 
effect of genuine Simon Pure Democratic free trade. It was to 
the free-trade mind the one redeeming feature of that act whose 
feeble attempt at retaining a shadow of protection was de- 
nounced as an evidence of "party perfidy and dishonor." Under 
that act importations of foreign wool, which had never but once 
reached so much as 150,000,000 pounds, were in its very first year 
more than 200,000,000 pounds, and in its closing year exceeded 
350,000,000 pounds. As a consequence, wool fell nearly 50 per 
cent, in value, the October price of washed clothing Ohio fleece 
wool, medium, dropping from 33 cents per pound in 1892 to 19 
cents in 1896, but increasing to 29 cents in 1897, immediately fol- 
lowing the restoration of the protective tariff under the Dingley 
law, and to 33.5 cents in the month of October, 1399, as shown by 
a table on page 244, which gives also the imports of wool during 
a long term of years. 

Another table, page 242, which is compiled from the Statistical 
Abstract of the United States, gives the home production of 



Low TARIFF REDUCES FARM VALUES. J9 

wool, the average price per pound, the per cent which the for- 
eign product forms of the total wool consumption in the United 
States, the number of sheep on farms and their value, also the 
value of imports of wool and wool manufactures in each year 
from 1875 to 1899. An examination of this table shows that for- 
eign wool, which, under protective tariffs, formed from 16 to 
33 per cent of the domestic consumption, increased to 40 per 
cent in 1895, 46 per cent in 1896, and 57 per cent in 1897. As 
a consequence of this increased importation of foreign wools 
and the accompanying reduction of nearly one-half in price the 
number and value of sheep on farms was greatly reduced. The 
number of sheep on farms in 1893 was 47,273,553, and their 
value $125,909,264. By 1896 the number had fallen to 38,298,783, 
and the value to $65,167,735, the actual value having thus been 
reduced about one-half, meaning a loss in sheep alone of nearly 
$60,000,000 to the farmer, while the annual loss in his wool clip 
during that time was correspondingly great. Another effect 
of the rates of duty on wool and woolens is shown by the col- 
umns stating the value of imports of wool and manufactures of 
wool. The value of the foreign wool imported prior to 1893 had 
not for many years reached so much as $20,000,000; but in 1895 
it had exceeded $25,000,000; in 1896 exceeded $32,000,000, and in 
1897, the last j^ear of the existence of the Wilson law, was $53,- 
243,191 while imports of woolen goods, which in 1892 amounted 
to $35,000,000, were in 1896 $53,000,000, and in the fiscal year 1897 
$49,000,000. 

Value of Farm Animals Reduced by Low Tariff, but Restored 
by Protection. 

It is not in sheep alone that the value of farm animals was 
affected by the low-tariff law and the depression which accom- 
panied it. A table on page 240 shows the value of the various 
classes of farm animals as reported by the Department of Agri- 
culture in each year from 1875 to 1900. It shows that the value 
of horses on farms fell from more than $1,007,000,000 on Janu- 
ary 1, 1892, to $500,000,000 in 1896 and $452,000,000 on January 1, 
1897, a loss of $555,0000,000 in this one item during the five years 
under consideration. In mules the value fell from $175,000,000 in 
1892 to $92,000,000 in 1897; swine, from $241,000,000 in 1892 to 
$166,000,000 in 1897, and of all farm animals the value fell from 
$2,461,755,698 on January 1, 1892, to $1,655,414,612 on January 1, 
1897, a loss of $806,341,0S6, while the figures for January 1, 1900, 
show that the two-billion-dollar line has again been crossed by 
the restoration of values accompanying the Dingley protective 
tariff and the prosperity which it brought to the farmer by in- 
creased home consumption as well as increased foreign markets. 
The American Agriculturist, a well-known publication, in a re- 
cent number, says that the live stock of the country in 1900 is 
worth $700,000,000 more than it was during the years of depres- 
sion under the low-tariff act. 

Value of Crops Fell Under Low Tariff — Restored by Protection. 

Nor is it in farm animals alone, however, that the farmer was 
the loser under low tariff, or the gainer again under protection. 
Another table, page 241, also prepared by the Department of Ag- 
riculture, shows the value of various articles of farm production, 
such as corn, wheat, oats, rye, barley, tobacco, cotton, potatoes, 
etc., in each year from 1866 to 1899. As has already been pointed 
out, much of the value of farm crops is due to the home demand, 
and this home demand is determined by the earnings and conse- 
quent purchasing power of individuals, and their earnings and 
purchasing power are in turn dependent upon the prosperity and 
activity of manufactures and business generally. 

It will be seen by an examination of this table that the value 
of the corn produced in the United States fell from $642,000,000 
iu 1892 to $491,000,000 in 1S96, although the quality of the crop 
in 1S96 was greater than in 1892; that of wheat from $513,000,000 
in 1891 to $225,000,000 in 1894 and $237,000,000 in 1895, returning 
to $428,000,000 in 1897; oats fell in value from $209,000,000 in 1892 
to $132,000,000 in 1896; rye, from $15,000,000 in 1892 to less than 
$10,000,000 in 1896; barley, from $45,000,000 in 1891 to $22,000,000 



30 HIGH PURCHASING TOWER OF FARM LAliOK. 

in 1896; tobacco, from $47,000,000 in 1892 to $27,000,01)0 iii 1S95; 
cotton, from $326,000,000 in 1892 to $260,000,000 in 189G, and pota- 
toes, from $103,000,000 in 1892 to $72,000,000 in 1896, while in all 
these cases the figures for later years show a marked increase 
in values over those under the Wilson Act. 

Testimony of a Well-Known Agricultural Authority. 

On this general question of the value of crops the American 
Agriculturist says thatr— 

"The value of staple crops in 1899 was valued at $400,000,000 
more than under the low-tariff depression, and other crops aggre- 
gated an increase of more than $200,000,000 in value, or 25 per 
cent gain, as compared with the period of depression, including 
1894, 1895, and 1896." 

One other feature of the improved condition of the farmer is 
pointed out by the American Agriculturist, and this relates to 
value of agricultural real estate, which, it says, has more than re- 
covered in value and is now worth $1,220,000,000 more than it was 
a single year ago, while the percentage of farms occupied by 
owners is, according to careful estimates, which it has made, 
now larger than ever before, while the number of farms under 
mortgage has materially decreased. The amount of mortgages 
on farms occupied by their owners is estimated at about $300,- 
000,000 less than at the beginning of the decade. "Mortgages." it 
says, "now average only about 27 per cent of the value of the 
farms they are on, the rate of interest has declined, and the 
great bulk of mortgages now in force were incurred to buy the 
farm or to improve it." 

Every State Suffered Under Low Tariff. 

To those who desire to trace carefully the course of prices by 
the various articles and in each section of the country during the 
years 1892 to 1899, another table, on page 250, will offer this op- 
portunity. It will be seen that every State shared in the depres- 
sion, as did also every important article of farm production. 

The "Wheat and Silver" Theory Badly Shattered. 

The theory that wheat and silver keep pace in price, and that 
a lower price for silver means in some mysterious way a lower 
price for wheat, has been absolutely disproved by the events of 
the four years. When Mr. Bryan was nominated in 1896 an ounce 
of silver was worth 69 cents and a bushel of wheat in the New 
York market was worth 65 cents. In six months from that date 
silver had fallen to 65 cents and wheat had advanced to $1.04. In 
May, 1898, less than two years after his nomination, silver was 
56y 2 cents per ounce and wheat $1.30 per bushel. In the entire 
four years since Mr. Bryan's first nomination wheat has never 
been as low or silver as high as on that occasion. On the date 
of his first nomination one bushel of wheat would not pay for 
one ounce of silver; a half year later it would purchase over 
one and one-half ounces, and in May, 1898, a bushel of wheat 
would pay for more than two ounces of silver. At the date 
of his second nomination silver was 12 per cent lower and 
wheat 50 per cent higher than at the date of his first nomi- 
nation. 



RELATIVE FALL IN PRICES OF ARTICLES OF FARM 
PRODUCTION AND FARM CONSUMPTION, 1870 TO 
1899. 

On this question of prices of farm products several other tables 
will prove especially interesting to those desiring to make a care- 
ful study of the subject. A table, pages 254 and 255, shows 
the average farm price for the principal articles of 
farm production in each year from 1870 to 1899: also the 
wholesale price in New York of the principal articles 
of farm consumption during the same period. This ta- 
ble is compiled from the reports of the Department of 
Agriculture and from the Aldrich report on prices, supple- 
mented Iry the reports of the Department of Labor on prices since 
1890. 



FAKM PRICES AND FREIGHT RATES. 21 

A careful study of this table shows that the prices of articles 
consumed on the farm have fallen with greater rapidity Than 
those of the articles produced on the farm. Wheat, for instance, 
fell in price from an average price of 94.4 cents per 
bushel in 1870 to 58.4 cents in 1899, a decline of 37 
per cent, while sugar, one of the most important classes 
of articles purchased by farmers for consumption, fell 
from 13.2 cents per pound in 1S71 to 4.9 cents in 1899, 
a decrease of 63 per cent. Corn fell from 49.4 cents per bushel in 
1S70 to 30.2 cents in 1899, a decrease of 39 per cent., while sheet- 
ings fell from 14 1 /;, cents per yard in 1870 to 5.2 cents in 1899, a 
reduction of 64 per cent. Oats fell from 39 cents in 1870 to 25 
cents in 1899, a reduction of 36 per cent, while drillings fell 
from 14.9 cents in 1870 to 5.1 cents per yard in 1899, a decrease 
of 65 per cent. 

Horses, which probably show a greater fall in value than any 
other article of farm production, owing to the substitution of 
steam and electricity for the class of transportation in which 
those animals formed so important a factor, show a fall in av- 
erage farm price from $81.38 per head in 1S70 to $37.40 in 1S99. 
a decline of 54 per cent, while mineral oil shows a fall from 
$30.50 per barrel in 1870 to an average of $5.80 in 1S99, a reduc- 
tion of SO per cent, in cost. Sheep show an average price per 
head in 1870 of $2.29 and a fall to $1.58 in 1895 under the low 
tariff, but a return to $2.75 in 1899. the average value of sheep 
being higher in 1S99 than in any year since 1875. Swine show 
a fall in the average value on the farm of from $7.03 per head in 
L870 to $4.40 in 1899, a reduction of 37 per cent, while fine salt 
shows a fall of from $2.15 per barrel in 1S70 to 35 cents per bar- 
rel in 1S99, a reduction of 70 per cent. 

Milch cows show a fall of from $39.12 per head, average farm 
price, in 1870 to $27.66 in 1S99, a fall of 29 per cent, while the 
average wholesale price of shoes (men's brogans) is emoted at 
$1.50 per pair in 1870 and 93 cents in 1S99. a fall of 38 per cent. 
Potatoes show an average farm price of 72 cents per bushel in 
1870 and 43.4 cents per bushel in 1899, a fall of 40 per cent, 
while bags show an average price of 36.2 cents each in 1870 and 
14.3 cents in 1S99, a drop of 60 per cent. Hay shows a fall from 
$13.82 per ton, the average farm price in 1870, to $7.27 in 1899, 
a fall of 48 per cent, while scythes are quoted at $12 per dozen 
in 1870 and $3.74 in 1S99, a reduction in price of 69 per cent. Tot- 
ton shows an average farm price in 1S71 of 16.9 cents, but in 1872 
it was 22.1 cents. Comparing 1S99, when the price was 6.88 cents, 
with 1S72, the higher of the two former years under considera- 
tion, we find that the fall in price is 69 ]>er cent., while cotton 
tickings have declined in price from 28.6 cents per yard in 1870 
to 7 cents per yard in 1S99, a fall of 75% per cent. Thus a 
given quantity of farm production will buy more now than 
ever before, and it is produced with vastly less labor than 
formerly. The purchasing power of farm labor is therefore greater 
than heretofore. 

Freight Rates Have Fallen More Rapidly Than Farm Prices. 

One further fact of interest to the farmers is that freight 
rates have fallen with greater rapidity than prices of farm pro- 
duction. Tables on pages 256, 257 and 25S show the average 
annual freight rate on wheat from Chicago to New 
York by rail; also the rates by canal from Buffalo to 
New York. The average rate by all rail in 1870 was 33.3 cents 
per bushel, and in 1S99 11.1 cents, a fall of 66 2-3 per cent; while 
the rate from Buffalo to New York by canal fell from 11.2 cents 
per bushel in 1S70 to 3 cents per bushel in 1809, a reduction of 73 
per cent. Freight rates from the Pacific coast to Xew York 
show a reduction of SO per cent. 

They also show the freight rates on live cattle from 
Chicago to New York fell from 55 cents per 100 pounds in 
to 25 cents in 1899; hogs, from 43 cents to 25 cents; sheep. 
from 65 cents to 25 cents, and dressed beef, from SS cents to 40 
cents, while refrigerator-car rates on dressed hogs fell from 59 
cents in 1887 to 40 cents in 1899. Freight rates on wheat from 
New York to Europe also show a marked reduction. The 



V 



22 FARM PROSPWRlTt ONOBR OtBVBLANt) ANL> McKINLBT. 

above statements of prices on farms and in the New York 
markets, also those relating- to freights, it is proper to add, 
are officially compilde by the Statistical Bureaus of the Agri- 
cultural and Treasury Departments except where otherwise 
specified. 

Prosperity and the Silver Question. 

The facts cited, showing prosperity in every branch of 
industry, have an important relation to the silver ques- 
tion, which formed so prominent a feature of the cam- 
paign of 1896 and which the Democratic leaders promise to 
again urge in the campaign of 1900. We were told in that cam- 
paign that the cause of the depression which then existed in 
every industry was not the tariff, but the lack of sufficient cur- 
rency, and that this could only be supplied by the free and un- 
limited coinage of silver at the ratio of 16 to 1. The country re- 
jected free coinage and adopted a protective tariff, and the pros- 
perity which has come both in increased business and increased 
currency fully disproves the Democratic claim that the depres- 
sion which then existed was due to the necessity for free coin- 
age of silver, and at the same time sustains the claim of Re- 
publicans that it was due to the low tariff then existing. 



FARM PROSPERITY UNDER TWO ADMINISTRATIONS. 

Republicanism vs. Democracy — Protection and Sound Money 
vs. Free Trade and Free Silver. 

It is a matter of history that rural prosperity and Republican 
rule are coincident. It is equally a matter of record that agri- 
cultural depression, mortgage foreclosures and low prices for 
farm products accompany Democratic administration of national 
affairs. The prosperity of the farmer depends upon the prosper- 
ity of all other industrial elements of our population. When the. 
industrial classes are employed at American wages their con- 
sumption of farm products is on a liberal scale and they are 
able and willing to pay good prices for the necessities and lux- 
uries of life. Under such conditions there is a good market for 
all the farmer has for sale. When the reverse is true and work- 
men are idle or working scant time at cut wages, they are 
forced to practise pinching economy and the farmer necessarily 
loses part of his market. The American farmer is prosperous 
when well-paid workmen are carrying well-filled dinner pails, a 
condition which has' accompanied Republican supremacy since 
the birth of the party. Idle men, tramps, and soup houses, fa- 
miliar sights under Democratic rule, furnish but poor markets 
for farm produce. 

Farm Prices Under Cleveland and McKinley. 

If any one is disposed to doubt the accuracy of this grouping 
of agricultural prosperity with Republican rule and rural poverty 
with Democratic ascendancy, let him examine the following 
showing of farm prices of wheat. The figmres are from the an- 
nual report of the Secretary of Agriculture and show the farm 
price of wheat on December 1 of each year averaged into periods 
of four years, beginning with the election of Cleveland in 1892: 



Years. 



1892-95 
1896-99 



Administration. 



Cleveland . 
McKinley. 



Price of Wheat, 



54.1 

67.5 



Note that under McKinley the price has averaged 25 per cent 
higher than under the preceding Democratic administration. 

Wheat, however, is but the smallest part of the story. The 
last year under Democratic rule prior to knowledge that a change 
of administration had been decreed by the people was 1895. 
That year also marked the lowest depths of the agricultural de- 
pression that followed the assault of the Wilson tariff law upon 



tfARM PROSPERITY UNDER CLEVELAND AND McKlNLEY. 23 

American industries. A comparison of the total value and the 
value per unit, on the farms, of the crops of that year, with a 
similar showing- for 1899, when the beneficent effect of Kepubli- 
can rule and protection and fair treatment for American indus- 
tries w.-is apparent, will furnish convincing" proof that Repub- 
lican policy and rural prosperity go hand in hand. The figures 
in each case arc from ttie official reports of the Department of 
Agriculture, except in the case of flax, where the best commer- 
cial estimates are used. 




1895. 



185)9. 



Corn 

Wheat... 

Oats 

Kye 

Barley . . . 
Potatoes. 
Cotton . . . 

Hay 

Tobacco.. 
Flax 



Total value. 


Value 
per unit. 


Total value. 


Value 
per unit. 


$544,985,534 


25.3 


-629 .210,110 


30.3 


237,938,998 


50.9 


319,545,259 


58.4 


163,655,068 


19.9 


198,167.975 


24.9 


11,964,826 


44.0 


12.214,118 


51.0 


29,312,413 


38.7 


29,594,254 


40.3 


78,984.901 


26.6 


89,328,832 


39.0 


260,338,096 


7.ii 


332,000,000 


7.0 


393,185,615 


8.35 


411,926.187 


7.27 


35,574,220 


6.9 


45,000,000 


9.0 


12,000,000 


75.0 


24,000,000 


1.25 


*l,7C.7 ,939,671 




82.090.986.735 





Plenty of work and good wages following the "opening of the 
mills to the labor of America'' so increased the home market for 
the produce of the farm as to make the ten staple crops above 
noted worth $323,047,064 more to the American farmer than in 
the last year of the Democratic era of free trade disguised as 
tariff reform, and repression of home industries. Not only was 
the aggregate larger, but the value per unit of every product ex- 
cept hay was higher, and the volume of x>roduction generally 
greater. 

Value of Farm Animals Under Cleveland and McKinley. 

After lands and improvements the greatest item of wealth of 
the American farmer is his live stock, and the value of such farm 
stock is a perfect barometer of his financial condition. Practi- 
cally the highest point ever reached was at the close of 1892, the 
last year of the Harrison Administration, when the valuation was 
$2,483,506,681, the country being prosperous, labor fully em- 
ployed and wages good. The lowest point reached in the past 
20 years was at the close of 1896, when mills were closed, fires 
drawn, labor idle, capital in hiding and business confidence de- 
stroyed by four years of Democratic administration. In four 
years the shrinkage of this form of farm wealth had amounted 
to 33 per cent, making $828,091,000 the price which the owners of 
live stock paid for the Democratic experiment of 1892. In the 
three years of industrial activity which followed the election of 
McKinley the value of live stock has kept pace upward with the 
increased earning and spending capacity of American labor, and 
on January 1, 1900, it had advanced to $2,283,375,413, or a rise of 
$632,960,000, or 38 per cent, from the depths of the depression. 
The figures in detail, as shown in the official reports of the De- 
partment of Agriculture, are as follows: 





]'aJa 


iof 


live stock 1 . 






Jan. 1, 1897. 


Jan. 1,1900. 










Total. 

8452,649,396 

92302,090 

369,239,993 

507,929,421 

67,020,942 

166,272,770 


Total. 

8603,969,042 


Mules 

Cows 


111,717,092 
514,812,106 


Cattle.. . . 


689,486,26V 


Sheep 


122,665,913 




245,725,000 














81,655,414,612 


82,288,375,4] 3 



24 FARM PROSPERITY UNDER DINGLEY AND WILSON LAWS. 

To appreciate what this means to each individual stock owner 
note the change in the average price per head of each class of 
animals: 





Jan. 1,1897. 


Jan. l.liHX). 

$44.61 

53.56 

31.60 

24.97 

2.93 

4.99 


Increase. 


Horses.. 


SHI 51 


42 per ct. 

99 


Mules.. . 


41.66 




28.16 


36 u 


Cattle 

Sheep 

Hogs 


16.65 

1.82 

4.10 


50 

61 « 

22 " 



Free Silver and the Farmer. 

In the campaign of 1896 the Democratic party came forward 
with an assault upon our financial integrity that laid a heavy 
hand upon the already sorely stricken farmer. The threat of a de- 
preciated currency completed the business paralysis, the domes- 
tic market for farm crops was given a fi nal blow through the 
cessation of all business enterprise, and prices of all farm 
products fell to a point where production was not only unprofit- 
able, but at a loss. 

Never in American history was the situation of the American 
farmer as distressing as when the Republican party met in con- 
vention in June, 1896. Business confidence was gone, labor was 
idle, capital retired, farm values shrunken and the sheriff with 
his foreclosed mortgage sales the only active man in rural com- 
munities. That convention, planting itself squarely upon the 
side of national honor and business integrity, nominated a man 
whose whole life work was summed up in his trenchant declara- 
tion, "Open American mills to American workmen." With Mr. 
Bryan's nomination the issue was squarely 3oined and presented 
to the American farmer for settlement, one candidate offering a 
debased currency, a cheap dollar; the other standing for sound 
money, protection to American industries and full employment 
for labor at American wages. 

The vote of the great farming States of the West elected Mc- 
Kinley, and the statistics already presented prove that rural 
prosperity followed. 



Prices of Farm Products in 1896 and 1900. 

The best showing of the change in the condition of the 
American farmer, between the first nomination of Mr. 
McKinley and his renomination is a simple statement of the 
prices ruling for farm staples at each date. It is an argument 
against the abandonment of Republican policies which cannot be 
met. The following table shows the current market price of dif- 
ferent staple crops on June 1, 1S96, and June 1, 1900: 



Farm products. 



Corn No. 2... 
Wheat No. 3. 

Oats 

Rye 

Barley 

Potatoes 

Hay 

Flaxseed — 
Butter 



Grade quoted. 



No. 2 in store 

No. 3 spring 

No. 2 in store 

No. 2 in store 

Fair to good maltin 

Choice Burbank — 

No. 1 Timothy 

No. IN. W 

Creamery firsts — 

Cheese j Full cream, choice . 

Live hogs \ Heavy packing 

Live Cattle Butcher steers 

Sheep j Westerns 

Clover seed . . 

Cotton 

Wool 

Broom corn 

Hops 

Millet seed . . 
Eggs 



June 1,1896. 



Prime contract 

Middling uplands 

Tub washed 

Self working, fair to good . 

N. Y. State choice 

German 

Firsts, strictly fresh 



Bush. 

Bush. 

Bush. 

Bush. 

Bush. 

Bush. 

Ton. 

Bush. 

Lb. 

Lb. 

100 1b. 

100 1b. 

100 lb. 

1001b. 

Lb. 

Lb. 

Ton. 

Lb. 

100 lb. 

Doz. 



$0.27K 
.57 

s y » 

.28 
.28 
9.25 

.82 
J4i 4 

3.25 
3.55 
3.25 

7.40 

.16% 
32.50 

.80 



June 1, 


Advance 


1900. 


per cent. 


$0.37% 


37 


.64% 


13 


.21% 


23 


.53 


61 


.40 


43 


.40 


43 


11.50 


24 


1.80 


119 


.18 


26 


•8% 


20 


5.12% 


58 


3.32% 


22 


4.97% 


53 


7.50 


1 


.99 


20 


.29 


76 


180.00 


454 


.12 


72 


1.20 


50 


.10% 


8 



Note. 



The above are Chicago market quotations except in case of cottou 
and hops which are New York quotations. 






AGRICULTURAL PROSPERITY. 

A Word of Explanation as to Why the Farmer Smiles. 

The "man with the hoe" is this year also the man with the 
"dough." This may be slightly slangy, but it is eminently truth- 
ful. The farmer is enjoying" a big, juicy piece of the prosperity 
pie, and if his slice is a trifle larger than seems entirely equitable 
no one will begrudge it to him. He has well earned it, and be- 
sides, when he is comfortably fixed he is a generous fellow, 
j ready to share his surplus with his brothers in the counting 
| house, the factory, the shop and all the by-ways of modern busi- 
ness. 

Last year he tickled the earth with that "hoe," and nature in 
generous mood responded to his advances. She proved no nig- 
gard in her favors, but "wantoned as in her prime." Good crops 
and good r>rices is a combination that has solved all the bitter, 
grinding problems of hard times. 

Figures are proverbially dry, but sometimes they are more elo- 
quent than silver tongues or gold pens. Just now they tell an 
amazing tale of rural prosperity. Orange Judd Farmer, through 
its crop reporting bureau, makes a few figures and it is willing 
they should speak for themselves. The financial result to the 
American farmer of his three principal cereal crops in 1898 and 
1899 is thus compared: 



Corn . . 
Wheat 
Oats... 



181*8. 



Bushels. 



Farm 
price. 



Value. 



1 ,868,1 20,«X) 
702,961, 000 
798,958,000 



28.7 
58.2 
25.5 



$536,140,000 
409.123,000 
203,734,000 

1,148,997,000 





1899. 




Bushels. 


Far in 
price. 


Value. 




2,207,473,000 
565,350.000 
869,140,000 


30.3 
58.4 
24.9 


$668,864,000 


Wheat 


330.164 .000 


Oats 


216,416,000 








1,215,444,000 



For three crops alone he has a neat little extra surplus just 
now of $66,447,000, but this is only part of the tale. In fact, 
it. is a continued story with as many chapters as he has crops. 
He has about 40,000,000 bushels more potatoes than he raised in 
1S98 and his whole crop is bringing him 10 to 15 cents per bushel 
more. A few of him way up where the red line on the map sep- 
arates him from British tyranny, raises more flax than was ever 
dreamed of before, 20,000,000 bushels or more, and the soulless 
seed crushers are burdening his life and his bank account by in- 
sisting upon separating themselves from a dollar and a quarter 
in exchange for every bushel he raised, while last year he got 
but SO cents for a 16,000,000 bushel crop. Down in Illinois and 
out in Kansas, where broom corn comes from, the honest grower 
swaps his bale of brush for an almost equally large bale of green- 
backs, a mere matter of $150 a ton for a crop that a few years 
ago he sold for $40, and this, too, for a crop the largest for some 
years. 

So it runs, chapter after chapter; butter, cheese, poultry, hay, 
small grain, all up in price with increasing production. 

Value of Crops in 1896 and 1900. 

[From Orauge Judd Farmer.] 
To fully appreciate why the farmer smiles, it is necessary to re- 
call a little history. His prosperity is no little single year af- 

25 



26 FARM PROSPERITY UNDER CLEVELAND AND McKINLEY. 

fair, based upon bad crops at home or abroad. The present is 
simply the crest of a wave that has been rising- for four years. 
The cup of depression was passed to the farmer first, and in 1896 
he got down to the dregs at the bottom of his draught. The 
price of his products started upward before the movement was 
apparent in other lines of industry, and if prices of other 
products have seemingly outstripped farm products during the 
last twelve months, it is simply a case of a late start trying to 
catch up. If we would know why the farmers' bank account 
is fat just now let us look into his books for 1896 and in 1899. 
Here are a few comparisons, the figures for 1896 being from Gov- 
ernment reports: 





1896. 


1899. 




Crop Value. 


Crop Value. 


Corn 


$491,007,000 
310,608,000 
132,485,000 


$668,864,000 
330,164,000 
216,416,000 


Wheat 


Oats 






Total 


934,095,000 


1,215,441,000 





This is only three eggs; there are others in the same basket. 



Value of Stock in 1896 and 1900. 

Now for a last chapter with the hair-raising climax. Orange 
Judd Farmer has just completed its annual live-stock census, 
and it takes keen pleasure in submitting the result of its in- 
vestigation because it shows not only further substantial im- 
provement during the past year, but the highest aggregate val- 
uation of farm live stock ever reported. Not only has the awful 
shrinkage in this form of farm wealth between 1892 and 1896 
been entirely recovered, but the aggregate now passes any pre- 
vious record. To show the previous high-water mark, the low- 
water mark, and the present advanced shore line, the accom- 
panying table presents in detail the aggregate valuation re- 
ported for each class of stock on January 1, 1889, 1896 and 1900: 





1889. 


1896. 


1900. 


Horses 


$982,195,000 
179,445,000 
366,226,000 
597,237,000 
90,640,000 
291,307,000 


$550,532,000 

94,222,000 

394,087,000 1 

564,304,000 \ 

52,880,000 

204,402,000 


$678,941,000 
109,016,000 




600,891,000 


Cattle 


796,457,000 




127.081,000 




245.425,000 








2,507,050,000 


1,860,420,000 ' 


2,558,111,000 



One more little tabular flare of trumpets is needed to fully il- 
lustrate the present position of the stock owner. It shows the 
average price per head at the lowest point of the depression, the 
present price, and the percentage of the advance: 



Horses, January 1, 1897. 
Mules, " 1898. 

Cows, " 1892. 

Cattle, " 1895. 

Sheep, " 1896. 

Hogs, " 1897. 





Low point. 


Jan., 1900. 


Advance, 
per cent. 




$83.65 

39.66 

21.40 

14.15 

1.60 

4.13 


$45.60 
48.67 
31.12 
24.83 
2.97 
4.99 


36 




23 




50 




76 




86 




21 







Words will nut paint the lily, neither will they add to the 
material evidence of rural prosperity presented above. Orange 
Judd Farmer congratulates the American husbandman upon his 
well-deserved prosperity and equally congratulates those who do 
business with him. Generous in his prosperity, he will share it 
with all. 



A DISCUSSION OF THE EFFECT OF HIGH 
AND LOW TARIFFS UPON THE WORK- 
INGMAN. 

During recent years a number of States, particularly those 
having' considerable manufacturing- interests, have published 
from year to year, through their bureaus of labor statistics, in- 
formation showing- among other things the number of persons 
employed in leading- industries, the total wages paid employees, 
the value of products, etc. 

In every case where these facts have been published for a 
sufficiently long time, they show a marked difference between 
the years of Democratic and those of Republican rule. In the 
former case a decided falling off is shown in business activity, 
number of persons employed, total wages paid, etc., while during- 
the Harrison and McKinley administrations there were increases 
all along- the line. 

Massachusetts Laoor Reports. 

The most complete statistics are those published by the State 
of Massachusetts. (See table on page 293.) They show an in- 
crease, during- each year of Republican administrations, in the 
value of product, total wages paid, and total persons employed 
in the leading manufacturing establishments of the State. Dur- 
ing the four years from 1888 to 1892 (Harrison's administration) 
there was a total increase of $73,941,8S0 in the value of the pro- 
duct, $18,244,474 in the total wages paid, and 27,364 in the num- 
ber of persons employed in establishments reporting for those 
years. Then came the four years of Cleveland's administration 
with its tariff and other "reforms," and we find quite a different 
story. From 1892 to 1896, there was a decided decrease in each 
year but one in each of these items. Subtracting- the increase 
in 1894 from the total decrease during* the other three years, 
we find a net decrease of $96,916,006 in the value of products; 
$4,085,252 in the total wages paid, and 16,687 in the number of 
persons employed. 

In 1S97 and 1898 we find the return of prosperity during Mc- 
Kinley's administration. Onee more we see increases all along 
the line. During these two years there was a total increase of 
$45,300,054 in the value of the products, an increase of $1,219,7*1 
in the total wages paid and of 14,215 in the number of persons 
employed. 

New York Labor Reports. 

The New York State Labor Bureau in a recent publication 
shows the total number of persons employed and total 
wages paid in 66 selected establishments representing the lead- 
ing industries of the State during each of the nine years from 
1891 to 1899 (see table on page 291). In this report, as in the 
case of the Massachusetts statistics, the four years of Democratic 
administration, namely the fiscal years ending May 31, 1S94 and 
1S95, and June 30, 1S96 and 1897, stand out in striking contrast 
with the prosperous years of the McKinley and Dingley tariffs. 
It must be borne in mind that the data given for New York are 
not for the calendar years, but for the years ending May 31 
and June 30, respectively. For this reason the year ending 
May 31, 1893, must be counted as the last year of Harrison's 
administration, and that ending June 30, 1897, as the last year 
of Cleveland's administration, as in either case but a few months 
elapsed after the inauguration until the end of the fiscal year. 
Again we find a stead}' increase during each year of Harrison's 
and McKinley's administrations, both in the number of persons 
employed and total wages paid, and a decline in those items 
during Cleveland's regime. For the year ending June 30, 1899, 
which was the most prosperous year on record in the United 
States, the increase in employment for labor was nearly 70 per 
ccnl as contrasted with 1894, the first year of unrestricted ivoe- 

27 






28 STATE LABOR BUREAUS SHOW PROSPERITY OF LABOR. 

trade tariff legislation. During the last two years of the Har- 
rison and the first two years of the McKinley administration 
the men in the 66 New York establishments received $44,000,000 
In wages. During Cleveland's four years "they received only 
$36,000,000, 

The New York Labor Bureau report further shows the un- 
doubted prosperity of 1899 in its statistics of unemployment. 
At the end of December, 1898, 27.2 per cent of the working 
people in all trades were reported unemployed. At the end of 
March, 1899, the unemployed amounted to 18.6 per cent. At 
the end of June it decreased to 10.9 per cent, and at the end 
of September, to 4.7 per cent. 

Commenting on this remarkable exhibit, the New York World 
says: "How much these simple figures mean of prosperity! How 
much they mean of happiness in the homelives of hundreds of 
thousands! How much they mean of welfare for the country. 
What a warning they hold for politicians who would start an- 
other 'calamity campaign.' " 

But not only in New York and Massachusetts do we see this 
contrast between Democratic and Republican rule and its in- 
fluence upon the country's prosperity. There are still other 
States to corroborate this interesting statistical story. 

Pennsylvania Labor Reports. 

The State of Pennsylvania in its annual report on industrial 
statistics for 1898 published a series of tables consisting of com- 
parative statistics for 358 identical establishments, representing 
47 industries, for the years 1892 to 1898. These tables (see 
page 291) show that Pennsylvania, as in the other two 
States mentioned, there was a decided decline in busi- 
ness activity as soon as the effects of the Cleveland admin- 
istration could be felt. During the first year of "tariff reform" 
there was a decrease of 10.62 per cent in the number of persons 
employed, 15.48 per cent in the total wages, 5.43 per cent in the 
average wages paid (which in the following year were still fur- 
ther reduced 10.97 per cent) and 16.11 per cent in the value of 
the products. This decided decline in business continued dur- 
ing the second and fourth years of Cleveland's administration. 
In 1897, however, we come to the first year of McKinley's ad- 
ministration, and although the effects of a Republican admin- 
istration could not wholly be felt, there was already a turn 
for the better during that year. Already the number of em- 
ployees, the aggregate wages paid, and the value of product 
showed a slight increase over the preceding year, which in- 
creases became very marked in 1898, being accompanied also by 
an increase in the average wages of all employees. In 1899 a 
marked increase is shown in all lines. In the rolled iron and 
steel industry there is an increase of 30 per cent in the number 
of men employed, compared with 1896, and 64 per cent in the 
wages paid; in pig iron, 31 per cent increase in men employed 
and 63 per cent in wages paid; in tin plate works, an increase of 
140 per cent in men employed and 182 per cent in wages paid. 

Unfortunately the reports of the labor bureaus of other States 
do not furnish statistics sufficiently complete to permit a con- 
tinuance of this comparison, but in all cases where they have 
presented any statistics of business activity in recent years, they 
all show, without exception, the same fluctuations as were found 
in Massachusetts, New York, and Pennsylvania. 

There is yet another and an important source which corrobo- 
rates the above mentioned facts, namely, the reports of the In- 
terstate Commerce Commission. The report on "Statistics of 
Railways," published in 1899 by this Commission, contains a 
comparative summary of the total number of railway employees 
in the United States for the years ending June 30, 1892 to 1899. 
(See page 295.) These tables show that during' the two 
years ending June 30, 1893, before the effects of the 
Cleveland administration could be felt, there was a rise 
in the average wages paid and an increase each year 
in the number of persons employed in almost every class 
of railway employees. During each of the four years 
following, or the years ending June 30, 1894, 1895, 1896, and 1897, 
the wages were lower in almost every class, and fewer persons 



HIGH PURCHASING POWER OF WAGES. 29 

were employed than during- the last .year of Harrison's admin- 
istration. In fact, from June 30, 1893, to Jane 30, 1894, there 
was a decline of nearly 100,000 in the number of railway em- 
ployees. As McKinley was inaugurated March 4, 1897, the effects 
of his administration could not be felt until the year ending 
June 30, 1898. During that year the return of prosperity is ap- 
parent all along the line. In almost every occupation there was 
an increase in average earnings over the preceding years, and 
the number of railway employees in the United States for the 
first time exceeded the number during the last year of Harrison's 
administration. There were over 50,000 more persons employed 
during the first year of McKinley's administration than during 
the last year of Cleveland's administration. The report of the 
Interstate Commerce Commission for 1S99 shows a total of 928,- 
924 employees on June 30, 1899. This is an increase of 105,448 
during the two years of McKinley's administration, as compared 
with a decline of 50,126 during that, of ex-President Cleveland. 



WAGES, PRICES AND PURCHASING POWER. 

The "Aldrich Report" Brought Down to Date, from Official 

Sources. 

One of the chief claims of the Democratic orators during the 
last Presidential campaign was that we need cheap money so 
that the workingman may have higher wages and that the far- 
mer may receive more for his crops. These orators, however, 
did not take into account the lower purchasing power of the 
depreciated currency, and of the well established economic fact 
that whenever on account of inflated currency, or for any other 
reason, prices go up, they go up earlier and relatively much 
higher than wages, invariably resulting in a decrease of purchas- 
ing power, well illustrated during the Civil War and during the 
enforcement of the Bland-Allison act. It is also a well estab- 
lished fact that whenever there is a stable, monetary system and 
when there are no other disturbing elements, the general tenden- 
cy of prices is downward and of wages upward, resulting in an 
increasing purchasing power of wages and general prosperity. 
These facts were clearly proven by the Senate Report on Whole- 
sale Prices and Wjiiges, etc.. published in 1893, in which relative 
prices and wages were shown for a period of 52 years, and up 
to 1891. Since that time two investigations have been made by 
the U. S. Department of Labor, which permit, in a measure, a 
continuance of this relative showing. An article on "Wholesale 
Prices, 1890 to 1899," published in Bulletin No. 27 of the U. S. 
Department, of Labor, gives the wholesale prices of 99 articles 
or groups of articles of consumption. Of these 99 articles, there 
were 90 which also appeared in the Senate Report. For the 
purpose of having a continuous series of relative prices from 
1840 to 1899, these 90 articles have been selected from both re- 
ports, and a new series of relative prices worked out. The fluc- 
tuations of the average prices of these 90 articles during' the 
two periods from 1840 to 1891 and from 1890 to 1899 are found 
to he about the same as those of the larger number of articles 
considered in the two investigations. 

With regard to w r ages, it was not possible to obtain such a 
continuous series for the same occupations, etc. But as good 
an idea of the course of wages since 1891 may be obtained from 
an article on "Industrial Combinations," published in Bulletin 
No. 29, 1900, of the U. S, Department of Labor. This article 
contains wage quotations covering a period of about 12 years. 
A selection has been made of all those quotations which run 
continuously for the same establishments and occupations from 
1S9.1 to 1900, inclusive. The averages of these quotations from 
year to year, which represent about 50 occupations in establish- 
ments in various parts of the country, have been reduced to a 
relative basis corresponding to that of the Senate Keport on 
''Wholesale Prices, Wages, etc." 

Having thus obtained a continuous series of wages and prices 
from 1840 to 1899, and of wages to 1900, we can follow their 
course during this entire period. 

In order to make it. possible to secure a comparable average 



30 HIGH PURCHASING POWER OF WAGES. 

of the wage and price quotations for each year it was necessary 
to select. The average quotations for one year and use them as 
a basis of comparison. The year 1800 represents a period in 
our industrial development between the old methods before the 
war and the improved methods of more recent years, and for 
Ih is reason it was taken as the basis. The average prices, the 
average wages, and the resulting purchasing power of wages 
were each considered as 100, and the figures of prior and sub- 
sequent years were expressed as percentages of the same. Ac- 
cording to the series of relative prices and wages thus obtained, 
and shown in a table on page 2S2, it is found that 
there w<as a slight downward tendency in prices and 
an upward tendency in wages and purchasing power from 
1S40 to 1S60. During the five-year period of 1860 to 1865 the 
average prices of 90 commodities rose 151.7 per cent above those 
of 1860, but wages rose only 4:;.l per cent, while the purchas- 
ing power of wages dropped 43.1 per cent. During the next five 
years; or after the war, prices fell off to 56.8 per cent above 
1S60, while wages rose to 62.2 per cent above that basis. Then 
came the five years, 1S70-75, which included the panic of 1873 
and the demonetization of silver, referred to by the Democrats 
as the ''great crime." Prices continued to fall until 1875, when 
they were only 36.7 per cent above the 1860 basis, wages ascended 
until they reached 67.1 per cent above that year, and then 
dropped to 58.4 per cent in 1875, but the purchasing power of 
wages continued its upward course until it reached 15.9 per 
cent above 1860. Then came the five years which included the 
Bland-Aib son Act. The effect of this silver coinage is clearly 
shown by the rise in }>rices and the drop in the relative pur- 
chasing power of wages. 

Prices rose from 92.1 per cent in 1879 to 1.15.3 per cent above 
the 1860 basis in 1880, while the purchasing poAver fell from 151.9 
per cent to 14.5 per cent above the I860 basis. In 1882 prices 
resumed their downward tendency, wages continued to rise and 
the period from that year until 1893 was the most prosperous 
that had ever been experienced in our country's history. Then 
came Cleveland's administration and "tariff reform" with the 
shutting down of industries and the consequent army of un- 
employed. "Wages fell at once and continued to fall steadily during 
each yea?- of the Democratic regime. Prices at first remained sta- 
tionary and then continued their downward course, so that for 
those who retained their employment during the panic follow- 
ing Cleveland's "tariff reform" the effect was not so strongly 
felt, but for the millions who lost part or all of their employment 
the period is one of only bitter memories. 

With the return of prosperity under the McKinley Adminis- 
tration the increased business activity naturally caused a rise 
in the prices of commodities. This accounts for the upward 
tendency in prices in 1898 nnd 1S99. But, as we have seen, wages 
are always slower to rise than i>rices. Hence we find that while 
in 1898 prices had risen, wages were still Ioav as a result of the 
business depression during Cleveland's Administration, and we 
see a temporary decline in the purchasing power of wages in 
1898. In 1S99, however, wages again took an upward turn, and 
as they rose more rapidly than the prices we see once more in 
1899 an increase in the purchasing power of wages. 

While positive, statistics are not available for 1900, as the 
year has not yet been completed, the increase in wages which be- 
came general in the spring of 189.) has up to the present time 
reached about 15 per cent, according to an estimate based upon 
an examination of the trade union journals of the country. This 
increase since 1898 brings the imgis and the purchasing power to a much 
higher point than ever before. _ • 

JJnless a change in the Government pohey with regard to the 
tariff or the monetary system, or the advent of an Administra- 
tion which destroys the present business confidence, causes an- 
other business depression, this country will during the next few 
years see an era of prosperity far in excess of anything that has 
ever been experienced in this or any other country. 

All the figures presented in the above statement were based 
upon the Aldrich report, supplemented by information obtained 
from publications of the U. S. Department of Labor, and all I he 
figures can be verified by the onVial publications mentioned. 



TRUSTS AND LABOR. 

A Study of Industrial Combinations and Their Effects on 
Wages, Employment, and Prices. 

The United States Department of Labor published in its Bulle- 
tin for July, 1900, the results of a careful investigation of 41 
trusts and industrial combinations, the investigation covering, 
among other subjects, the dates of formation, capitalization, 
amount and character of stocks and bonds issued, profits, wages, 
number of employees and prices before and after the combina- 
tions, etc. The report was prepared by Prof. J. W. Jenks, of Cor- 
nell University, the trust expert of the U. S. Industrial Com- 
mission, and the material was collected by special agents and ex- 
perts of the U. S. Department of Labor. 

As far as statistics were available the report shows in general 
a greater number of persons employed and higher wages paid 
in the same establishment after the combination than before. 
Owing to the fact that the books of many corporations before 
they entered into the combination were not accessible, only a 
portion of the combinations were able to furnish statistics of 
wages and persons employed before and after the combination. 

The report shows that of 11 establishments giving returns, 9 
show an increase in the average wages of superintendents and 
foremen, 4 show a decrease, and in one there has been uo 
change. Out of these 14 companies 10 were formed in the years 
1898 and 1899, so that the comparison of conditions before and 
after is a very direct one. 

In 7 cases out of the 14, the wages of traveling salesmen in- 
creased, in 2 they decreased, and in 1 they remained the tame. 
In 2 cases no traveling salesmen had been employed by the 
companies entering in the combination, whereas after the Combi- 
nation was made such men were put to work. In one case in 
which traveling salesmen had been employed by the separate 
companies their services were dispensed with ; fter the combi- 
nation. One establishment reported none employed before or 
after. 

The average annual wages of skilled laborers have increase- f 
in 10 cases and decreased in 2. The average annual wages of 
unskilled laborers have increased in 10 cases, decreased in 1, and 
remained the same in 1, after the combination. 

Taking the employees as a whole, the results show that cut 
of 12 cases reporting there had been an increase of wages in 9 
cases and a decrease in 3. 

Taking all employees colleetively in each of the 13 combina- 
tions reporting, there have been but two cases of a decrease in 
the number of employees and but one case of a decrease in the 
total annual wages paid. 



31 



32 TRUSTS HAVE i\OT REDUCED WAGES. 

The following" table shows the annual average wages paid 
before and after the formation of the combinations and the 
per cent of increase or decrease in the average annual wages, as 
well as the per cent of increase or decrease in the number of 
employees and the total amount of wages paid, by classes of 
employees: 

Average annual wages paid before and after the formation of the combina- 
tions, and per cent of increase or decrease in wages, and the number of 
employees. 





i 

5 ^ 

is 

a 
o 
o 


Average annual wages 
paid. 


Per cent of increase 
or decrease in the 
number of em- 
ployees. 


crease 
i total 
wages 


Occupations. 




o a 
o o 

s 3 


Per cent of 
increase or 
decrease. 


Per cent of in 
or decrease i 
amount of 
paid. 


Superintendents and 


12 
12 
9 
9 
9 
9 

9 


$1,262 

1,346 

620 
294 
757 
754 


81227 

1.246 

705 

351 

798 
662 


— 2.77 

— 7.43 

— 13.71 
+ 19.39 
+ 5.42 

— 12.20 


+ 11.79 
— 4.17 
+ 23.34 
+ 20.06 
+ 36.45 
+ 29.06 


+ 8.72 

— 3.57 
+ 40.13 
+ 43.38 
+ 43.98 . 

- 13.42 

2 


Traveling salesmen 

.Skilled laborers 

Unskilled laborers 

Clerks 


Other employees 




460 


518 


4- 12.61 


4- 21.56 


4 36.68 





This table shows an increase in the average annual wages paid 
to skilled laborers, to unskilled laborers, and to clerks, and/a de- 
crease in the average annual wages paid to superintendent^ and 
foremen, traveling salesmen, and the unclassified employees. 
Taking all of the employees together, the percentage of increase 
of average annual wages has been 12.61. 

In all line*, taking together all the establishments which hare reported, there 
has been a decided increase in the numberof employees; and in all cases, with 
the exception of the traveling salesman, there has been also an increase in the 
total amount of wages paid. 

A table giving the total amount of gross sales, number of em- 
ployees and total annual wages in the case of 8 combinations re- 
porting, shows a decided increase in the efficiency of the em- 
ployees, the average increase of gross sales being 47.32 per cent, 
as compared with an increase of 27.59 per cent in the number of 
employees, and 38.19 per cent in the total annual wages paid. 
The increase of 38.19 per cent in the annual wages as compared 
with the increase of 27.59 per cent in the number of employees, 
shows that the benefit of this increase of efficiency did not go 
entirely to the employers, but was divided between them and 
the employees. 



PROTECTED LABOR IN AMERICA 

vs. 

FREE TRADE LABOR IN GREAT BRITAIN. 

Higher Wages and Lower Prices in the United States. 

The most complete comparative statistics of wages in the 
United States and Europe that have ever been collected in any 
country were obtained by the U. S. Department of Labor and 
published in the September, 1898, Bulletin of that Department. 

To secure this information, a personal canvass was made of 
the wage pay rolls of establishments doing business continually 
since 1870 in this country and Europe. Thus continuous and ac- 
curate returns have been obtained from 1870 to 1896 for the 
various countries considered. In this country the information 
was collected by agents of the U. S. Department of Labor, and 
in Great Britain l»\ persons acting under the supervision of the 
British Labor Department. The work was done simultaneously, 



BBTTEB WAGES IN UMTMD STATES THAN IN ENGLAND. ;J3 

according- to the same plan of schedules, and at the expense of 
the U. S. Department of Labor. There can thus be no cavil as to 
the accuracy and comparability of the wage statistics presented 
in this official publication. 

These statistics show a remarkable difference between wage 
conditions in the United States and Great Britain, a difference 
amounting to nearly one hundred per cent in favor of the Amer- 
ican workingman. As the statistics of Great Britain cover only 
three cities, viz., London, Glasgow and Manchester, it would be 
useless in this connection to reproduce the wage data for all 
the American cities, especially as the wage rates shown in the re- 
port differ but slightly in the various American cities. In our 
comparison of American and British wage rates we have there- 
fore selected the three American cities which, on account of their 
population, are most nearly comparable with the above-named 
British cities, namely, New York, Chicago and St. Louis, respec- 
tively. 

The comparative figures given on pages 2S3 to 2S7, show the 
w;ige rates for the entire period of 1870 to 1896, inclusive. A 
comparison of these wage rates will show at a glance that pro- 
tection America is decidedly preferable to free-trade England, 
and that notwithstanding the erroneous statements often made 
by politicians and agitators that wages in this country are ap- 
proaching those of European pauper labor, there has been, up to 
the last Cleveland regime, an almost steady increase in wages in 
this country and there has not been at any time the slightest 
tendency toward the low rates with which the British working- 
man must content himself. 

A comparison of the average wage rates during the last year 
shown in each of the tables, namely, 1S96, gives the following 
interesting results: 

Blacksmiths received $2.45 per day in New York and $1.02% in 
London; $2.80 in Chicago and $1.48 in Glasgow; and $2.26% in 
St. Louis and $1.46 in Manchester. 

Blacksmith's helpers received $1.65 per day in St. Louis and 
$0.9314 in Manchester; and $1.69% in Chicago and $0.85*4 iu 
Glasgow. 

Cabinet makers received $2.50 per day in New York and $1.68 % 
per day in London; $2.53 per day in St. Louis and $1.3714 in 
Manchester. 

Carpenters received $3.49% per clay in New York and $1.68% 
in London; $2.80 in St. Louis and $1.50% in Manchester; and 
$2.54 in Chicago and $1.5514 in Glasgow. 

Iron molders received $2.73% per day in Chicago and $1.62% 
in London; $2.30 in St. Louis and $1.58% in Manchester. 

Machinists received $2.55 per- day in New York and $1.54% in 
London; $2.52% in St. Louis and $1.46 in Manchester. 

Pattern makers received $2.78% per day in St. Louis and $1.58% 
in Manchester. 

In England, as in the United States, there was a steady in- 
crease in wages, owing to the organization of labor, the better 
education of the working people and the improved opportunities 
for high-class work. While in Great Britain there were no seri- 
ous wars or other influences to give a set-back to the steady 
upward course of wages during the period from 1870 to 1896 cov- 
ered by the investigation, the United States have had two oc- 
casions upon which there were such interruptions. The first was 
from 1873 to 1S76, the period of reaction from the abnormal con- 
ditions caused by the civil war, and from 1S9H to 1S96, the period 
of Cleveland "tariff reform." Notwithstanding these" interrup- 
tions, the net increase in wages from 1870 to 1890 was relatively 
greater in the United States than in Grtkd l>:itain. 

Lower Prices in the United States than in England. 

The claim is often made that Avhile w ages are higher in 
the United States, the cost of living is correspondingly cheaper 
in Great Britain. That this statement is erroneous can be proved 
by official statistics obtained simultaneously in both countries. 
In 1802, the Senate Committee on Finance made an extensive re- 
port on "Ketail Prices and Wages" in leading cities of the Tni- 



M LOWKI: 1MIK KS IN UNITED STATES THAN IN ENGLAND. 

ted States and Europe at different periods from June, 1889, to 
September, 1891. Among the cities considered in this report were 
St. Louis, Mo., and Manchester, England, cities for which wage 
comparisons have just been made. A comparison of the prices 
of articles of identically the same description, obtained at the 
same time, namely, June, 1889, and September, 1891, in both 
cities, show that instead of the necessary commodities of life be- 
ing higher in the United States than in England, they are, en 
the contrary, as a rule, much lower. This is shown in the table 
on page 288. A glance at this table shows that most of the 
necessary food products, such as bread, eggs, lard, bacon, roast 
beef, hams, mutton, milk, starch, and canned vegetables, were 
much lower in St. Louis than in Manchester, while the prices of 
the few remaining food products averaged about the same in 
both countries. 

With regard to clothing and cloth goods, we find that men's 
hosiery, cotton shirts, sheetings, shirtings and cotton and woolen 
dress goods of the same description and quality were cheaper in 
St. Louis than in Manchester; that carpets, flannels and cotton 
underwear averaged about the same, and that only in the case 
of men's hats was there any decided difference in favor of the 
Manchester purchaser. 

Household articles, such as earthenware, glassware and cut- 
lery, were nearly the same in price in St. Louis as in Manchester, 
with a very slight difference in some cases in favor of the latter 
city. On the other hand, furniture cost from about one-fifth 
to one-half as much in the United States as in Great Britain, so 
that for the cost of one bed-room set in Manchester cue could 
buy from two to three sets in St. Louis; and for the cost cf one 
dining table at Manchester, a whole dining-room set could be 
bought in St. Louis. 

But the question may be asked, "If the American workingi.neu 
earn so much more and pay so much less for what they consume, 
why are they not all wealthy and contented?" The answer may 
be found in the statement of the eminent French scientist, Prof. 
Emile Levasseur, in his work on "L'Ouvrier Americain" (The 
American Workingman). After summing up the conditions of 
labor in America as compared with Europe, he says that wages 
in the United States are about double the wages in Europe; that 
objects of ordinary consumption by working people .(.excepting 
dwelling houses) cost less in the cities of the United States than 
in those of Europe; that the American workingman lives better 
than the European, that he eats more substantially, dresses better, 
is more comfortably housed and more often oicns his dwelling , spends 
more for life insurance and various social and beneficial associations, 
and, in short, has a much higher standard of life than the European 
worldngman. 

Labor Conditions on State Railways of Europe and Private 
Railways of the United States. 

Much stress is often laid upon the so-called economic manage- 
ment of railways owned and operated by the several State Gov- 
ernments of Europe. Statistics have been cited purporting to 
show that freight and passenger rates are cheaper on the State 
railways of Europe than are those of the United States, and 
these are used to prove the advisability of Government ownership 
of railways in this country. 

As a matter of fact, rates are not cheaper on the State railways 
of Europe than they are in this country, and, furthermore, the 
freight and passenger service is infinitely better in this coun- 
try," as every traveler can testify. The most important point, 
however, which must be considered in comparing the State rail- 
ways of Europe with the private railways of this country, at 
least the one which affects the workingman most, is that of 
wages. The advocates of public ownership of railways in this 
country, in presenting their statistics, say nothing of wages 
and overlook the fact that wage rates on the American railways 
are about triple those paid on the State railways of Germany and 
Belgium. A report on "The Condition of Railway Labor in Eu- 
rope," published in the January, 1899, Bulletin of the U. S. De- 
partment of Labor, throws some interesting light upon this fea- 
ture of railway expenditure. 



STATE OWNED RAILWAYS PAY LOW WAGES. 35 

A comparison of the wage rates on the State railways of Eu- 
rope, as shown in the above-mentioned report, with the rates 
paid by the private companies in this country in 1893, as shown 
in the report of the Interstate Commerce Commission, gives some 
interesting results. 

The average yearly earnings of general officers of American 
railways in 1898 were $2,548.87, and on the State railways of Bel- 
gium they ranged froiri $1,544 to $2,316; other railway officials 
received $1,750.39 per year in the United States and $416.11 in Bel- 
gium; general office clerks earned $739.78 in the United States, 
while in Belgium the draughtsmen and higher class clerks re- 
ceived $472.66, and the other clerks $220.60 per year; locomotive 
engineers earned $1,167.87 per year in the United States, from 
$277.92 to $370.56 in Belgium, and from $285.60 to $530.00 in Prus- 
sia; locomotive firemen earned $647.38 per vear in the United 
States, $226.92 in Belgium, and from $338 to $357 in Prussia; 
conductors received $979.18 per year in the United States and 
from $190.40 to $285.60 in Prussia; other trainmen received $591.38 
per year in the United States, while brakemen earned $222.36 in 
Belgium; switchmen, flagmen and watchmen received $1.74 per 
day in the United States, while in Belgium block signal men re- 
ceived $0.46 per day, and gate keepers $0.14 per day; railway 
trackmen, the lowest paid railway employees in the United 
States, received $1.16 per day, while general laborers received 
from $0.39 to $0.58 per day in Belgium, and $0.57% per day 
on the Prussian State railways. It is interesting to note that, 
while the, average salaries of general officers in the private rail- 
way services of the United States were from 10 to 75 per cent 
higher than the earnings of such officials on the Belgian State 
railways, the wages of locomotive engineers, firemen and con- 
ductors in the United States were from 185 to 414 per cent high* r 
than in Belgium and Prussia, and that the lowest class of un- 
skilled railway laborers in the United States receive in many 
cases higher wages than the conductors and locomotive en- 
gineers employed on the Belgian and Prussian State railways. 



THE PROSPERITY OF LABOR. 

Protection and Sound Currency Have Brought Increased Em- 
ployment, Increased Earnings, and Increased Activity 
Among our Workingmen and Their Organizations. 

The prosperity of a nation is illustrated by the eondilion of ils 
wage-earners. If the laborer in any country is receiving good 
wages with steady employment thai e<>untr\ can npl be an\ 
thing but prosperous. That, I he United Stales lias been pros- 
perous during the past three years is shown by the growth of 
the labor organizations in this country. 

While discussing the growth of corporations, it is in place to 
point out that the American Federation of Labor has also grown 
at a surprising rate during the last three years. While capital 
has been concentrating its power, labor has been doing the same. 
This means that labor is amply protected and is flourishing 
under this Republican Administration. Pounded in 1886, tic 
American Federation of Labor has conducted its business pub- 
licly, with dignity and with success. To-day it employs 12 paid 
organizers,, besides 470 volunteer organizers, who work in Can- 
ada, as well as in the United States. The following tabulated 
statement of the membership shows the condition of the different 
organizations named on the 1st day of January, 1900: 

.AMERICAN FEDERATION OF LABOR. 

Enrollment reported January 1, 1900 1,004,000 

< Gained since Januarv 1, 1900 304,000 

Local charters issued in 1900 1,500 

International and national unions now enrolled 73 

With State unions, 11; city trades councils, 134 145 

Record of 1S99. 

Membership gained 225,000 

International and national unions added 9 

Union labels authorized 29 

Strikes won 425 

Strikes lost 4s 

Strikes compromised 3!) 

Charters issued in 1899 (reported) 2.20 i 

Charters issued iu 1899 (not reported) 000 



Charters 
Craft. issued. 

Wood workers 4U 

Wood carvers £ 

Coopers ^ 

Trunk makers •;> 

Carriage and wagon makers 10 

Broom makers 



Musicians. 



12 

Bottle blowers ' 7 

Window-glass flattenei s J 2 

Textile workers 12 

Printers °£ 

Printing pressmen 4U 

Telegraphers 14 

Steam engineers » 

Coal-hoisting engineers 4 

Stationary firemen ^j 

Street-railway employees & 

Team drivers '° 

Longshoremen *» 

Commercial agents ' +J 

Retail clerks •» 

Stage employees i° 

Barbers ^ 

Hotel and restaurant em ployees . . IS 



30 OFFICIAL EVIDENCE OF PROSPERITY OF LABOR. 

BROTHERHOOD RAILWAY ORGANIZATIONS* 

Membership. 

Brotherhood <>f Locomotive Engineers i^.'nl!!! 

Brotherhood of Locomotive Firemen oS'aS 

Brotherhood of Railway Conductors -J [> [ \\'y 

Brotherhood of Railway Trainmen -y.uuo 

Not only lias this big" American consolidation, or federation, 
of labor issued a large number of charters, but its affiliated 
organizations have been equally prosperous, as will be seen from 
the following table, giving the number of charters issued by the 
different crafts for the year ending April 1, 1900: 

Charters 
Craft. issued. 

Miners i>08 

Butchers 23 

Brewers 25 

Cigar makers 20 

Tobacco workers 17 

Tailors 87 

Garment workers 22 

Shoe workers 34 

Leather workers 20 

Granite cutters 12 

Tile layers 7 

Painters 60 

Steam fitters 3 

Blacksmiths 32 

Machinists 59 

Iron moulders 50 

Iron, steel, and tin workers 50 

Boiler makers 40 

Electrical workers 20 

Sheet-m etal workers 31 

Turners 27 

Bicycle makers 10 

Metal polishers 42 

Stove mounters 12 

Pattern makers 15 

Nearly every national or international organization of labor 
has been increasing its membership, and the past three years 
have been those of greatest success for the consolidation of labor 
interests. 

President Gompers on Labor Conditions in 1893, 1897, 
and 1899. 

1893. 
^inpp August of this year we have been in the greatest industrial de- 

»S££ ff&. IS&S^SSSSSSU^SfSi, a number of people vainly 

SiS#?^itiS < S , aSSS 

prevail there must of necessity be something wrong at tne Dasic 
(hit ion. 

1897. 

rr1h<.t torrihlp neriod fo» the wage-earners of this country which began 

5 Si'aiB.W!." !.rs,r.:;'.« :»; 

&& a< I has«To« the soundest laws of economics and of progress. 

1899. 
The revival of industry which we have witnessed within the past yew 

or at least maintained. 



OFFICIAL EVIDENCE OF PROSPERITY OF LABOR. 37 

•- , ] , aV,'s , ^!i , p X l'! , i^n yo ' ,l ' 1 ntn< ' 0rS «e «naWed to submit to this convention, 
'..,«.„ the growth and progress ol our movement during the past year 
solie^TKnft^^ 08 * ratifying character. At lust we are' realizing 
ternmtPrt wnit ^ 0f the r, ears of anceasin 8 sacrifice, devotion, and unin- 
terrupted work of our fellow-unionists. 

The first of the above quotations by Samuel Gompers is taken 
from page 11 of the Proceedings of the American Federation of 
.Labor Convention, held on December 11, 1893, during the last 
Democratic administration of our national affairs. 

Ihe second statement, that of 1897, is taken from a signed 

article by Samuel Gompers, president of the American Federa- 

™ J^° r ' P ublislied in New York on January 1, 1898. 

ihe third quotation is from the report of President Gompers 

T)Pt^V° nV r\ n tl ° n 1 ° f the American Federation of Labor held at 

btm^T Dec ^ b€r A n ' * 8 "' Xt is a landing memorial to the 

t • Uon 3'^ ^American la bor under a Republican Admin- 

stratjon and Republican laws that are designed to protect, our 

"f ;f rners aud e ™™e them to secure the highest polsib e 

rate of wages 111 return for the labor which they have to sell 

president J^S 1° "^ h ^ tha * Mr ' Saxnuel Gompers, the 
.,l\vnv t I Am€rica n Federation of Labor, is now, and 

always has been, an uncompromising Democrat. His frank and 
unsobc.ted testimony to the better conditions of labor under a 
bepubbean Administration should, therefore, have some nilu 

-Republican policy and for Republican Administration. 

Labor and Prosperity. 

in^lffr' 1 / 1 ' 6 th ? con,litions to-day among our wage-earn- 
crfti \ ™ -"t fl ? m ^ Se that axiated during 1*e last Demo- 
unt ^el2° D ' Co ^? t the 2™ 1 ?** «* «"' people now 
iiiuiei tJie Republican protective tariff with those paid during 

part^Wa^hn^/^-f 11 ^ r * d « *»" «f theVmSSc 

hnd h t 6 h r^ kin / man °5 J°I day Wh ° d0es his °™ thinking has 

to stand nv th^T 8 ,? 1 ^ to , him that !t is to his best **<»«** 
The Til!' P latfOTm ^d principles of the Republican party. 
«wf«^ + * an wa .g- e - earn er wants the present good times and 

FhTnTawIv fT tmU \ in ^f nltely ' and he wil1 not vote Zs good 
thing away for any bubble of promises, which only means a 
disturbance of his industrial conditions, with less worS Twer 
wages, idleness, soup-houses, free bread, and the poorhouse 
o.^ eS + iP aKl + i n the United States are fro* two to four times 
fnthf ; tha ? ^ C WaffGS Pald to the corresponding class of labor 
of » ^%' iT3,d Z co V ntries of the worl d. The purchasing power 
of a dollar m America is correspondingly great?/ T , 
he average worker in foreign countries, most of W comforts 

e-nip?T menC -; S tlK V aTe . iB COmmon USe ^ the American wage- 
eamer are positive luxuries. The American workman and his 
fami y are the best-educated, the best-dressed, the best-housed 
and m every way the best-situated workers in the world The 
HiT^^«T?f" earner ?f ahYavs the most ****** workman. 
Sherfee^ anu«^^^ 

oTtf e^^world that thGSe Ulli " d ^ 4 Sl&l 
In order to learn from the executive officers of the national 

cond X™ na f I™* 1 lab ° r ^° nS ° f the United Stat ^ the exact 

he year 1S00 ''T neSS m th . is . co ^T, they were asked, early in 

the year 1900: In your opinion, are the prospects favorable for 

SSSSTS S*f,tt ™ pl °-— t? " s °- ? ** *$ - 

Reports From Labor Unions on Employment of Their Members 
and Prospect of Continued Employment. 

i,^. ba n S ; o S in enei *', preS 1 ide ?nl Am v' ican A g^ts' Association: Yes. Our mem- 
™£ e *" employe< K The only Question is how much they can sell 

tt^ S - v Dea ^ secr etarjr Bricklayers and Stonemasons' International 

ing 10 b n een Y d ne * U ° tim<? in th ° Mst0ry ° f this comtr * has "iaS* SffiS 
W. J. Gilthorpe, secretary Boiler Makers and Iron Shin Builders- Y.-s 

Our increase in employment is 150 per rent over 1897? Bmiaers - *<«, 



38 OFFICIAL EVIDENCE OF PROSPERITY OF LABOR. 

Charles Hank, secretary National Brick Makers' Alliance: Yes. Every- 
body working who wants to work. 

Robert Kerr, secretary International Brotherhood of Blacksmiths: Yes. 
Demand at present is greater than the supply. 

F. H. Harzbeeker, secretary Bakers and Confectioners' International 
Union: Yes. In our trade the slightest change is noticeable. Nearly tLe 
full membership now employed. 

International Brotherhood of Book Binders: Can not supply the demand 
for competent workers. 

Horace Eaton, secretary Boot and Shoe Makers' Union: Never so pros- 
perous as now. 

W. J. Maxwell, secretary Order of Railway Conductors: There is a very 
small percentage, as far as we know of, who are not employed if it is 
their desire to work. We further feel that the prospects are very favor- 
able for continued steady employment. 

John Paulson, secretary Lace Curtain Operatives: Yes. Very favorable 
indeed. 

Max Morris, secretary Retail Clerks' International Protective Associa- 
tion: Yes. Our efforts are directed toward shortening the hours of labor, 
and aim to abolish Sunday labor. 

Wm. Launer, secretary Glass Bottle Blowers: Yes. The outlook for the 
future in the glass blowing trade is very bright. 

John Kunzler, president Glass Workers: We have no reason to believe 
that our members will not be steadily employed for another year at least. 

E. J. Denney, secretary Iron Molders' National Union of America: 
Within the last twelve months have secured an increase in wages and 
many concessions favorable to our members, all of whom have been gen- 
erally employed. 

Chas. L. Conine, secretary Leather Workers on Horse Goods: Yes. Our 
organization is increasing in membership and all members working. 

T. J. Duffy, secretary Potters' National Union: Yes, Judging from pres- 
ent conditions. 

W. J. Spencer, secretary United Association of Plumbers, Gas Fitters, 
Steam Fitters and Steam Fitters' Helpers: Yes. If we can enforce our 
conditions concerning apprentices, w^e will have steady employment. 

George Godsoe, secretary Paper Makers' International Union: They 
are. Indications point very favorably toward steady employment. 

Jas. F. McHugh, secretary Stone Cutters' National Union: Yes, for a 
few years. 

Thos. O'Donnell, secretary Cotton Mule Spinners' National Union: Yes. 
Prospects are good for this year, as our manufactures are contracted for 
several months ahead. 

H. B. Perham, secretary Order of Railway Telegraphers: As far as I 
know, there are very few telegraphers out of employment. Prospects are 
favorable for continued and steady employment for the telegraphers. 

Barbers, 1 f Mine workers, 



Cigar makers, 

Coopers, 

Hoisting engineers, 

Brewery workers 

Electrical workers, 

Steam engineers (stationary), 

Firemen (stationary), 

Locomotive engineers, 

Locomotive firemen, 

fron, steel, and tin workers, 



Yes. . 



Steel and copper plate workers, 

Printers of all languages, 

Pattern makers, 

Stove mounters, 

Theatrical stage employees, 

Seamen, 

Tailors, 

Trunk makers, 

Railroad laborers, 

Textile workers, 



Oil and gas well workers, I Waiters, cook:., and bartenders. 

Longshoremen, I Woodworkers. 

Machinists, > I 

Within, a couple of short j^ears, by the wise administration of 
the Republican party, the Democratic haunts of idleness have 
been turned into hives of industry. Owing to the density of the 
smoke that is pouring- from the chimney tops of their factory 
furnaces it is impossible to see the gloom that is predicted by 
the Democratic party. 

Side by side with this record of the resumption of work is 
that of the increase of wages, ranging from 5 to 40 per cent, 
and the most gratifying fact in this matter of higher wag-es is 
that it has been voluntary to a large extent on the part of the 
employers. The following table is compiled from the reports 
of national and international unions, made in April, 1900, shoAV- 
ing the per cent of increase in wages of 50 different trades or 
crafts in the years 1897, 1898, and 1899: 



Increase of Wages in 1897, 1898, and 1899, as Reported by- 
Labor Organizations. 



Crafts. 


Wage increase. 


1897. 


1808. 


1899. 


Agents 


Per cent. 
5 
10 


Per cent. 
10 
12 


Per cent 
20 


Bricklayers and stone masons 


25 




10 


Bicycle workers 




10 
10 


20 


Boiler makers and iron shipbuilders 




25 


Brickmakers 




10 








10 







10 


15 


Baker.8 





15 


Bookbinders 


1 


10 
K 


25 
15 


Conductors (railroad) 




Coopers 


3 


4 


10 


Curtain (lace) operatives 


15 




8 
5 


12 
8 
6 
12 
10 
25 
20 


25 




15 




10 


Engineers (locomotive) 


Small 


30 


Engineers (coal-hoist ing) 


50 






25 






SO 






15 








10 


(■Jlass-bottle blowers ' 






8 








3 






10 


10 




10 




10 
1") 


s 

15 


17 




16 




15 


Meat cutters and butcher workmen 


25 








10 


Machinists 


10 


15 

m 


40 
40 


Potters 








5 


Paper makers 






10 






10 

15 


30 


Pattern makers 


5 


30 
5 


Spinners ( cotton mule) 






22 


Stove mounters 




5 

200 

5-10 

12 


10 




25 


300 


Street-raihvav employees 


12 




5"' 


33 


Tailors 


10 


Tin-plate workers 






15 


Trunk makers 






15 


Tile layers 




10 


Railroad laborers 

Textile workers 


5 


/ 


10 




" 


8 
10 
10 

5 

8 


Upholsterers 


:V 


26 




10 


Wood carvers 


& 


Wood workers 


5 



"LEST WE FORGET." 

A Few Facts About 1893-1896 Which Workingmen Should 
Remember in 1900. 

The voters of the United States are about to be called upon 
to determine which party shall control the affairs of the Gov- 
ernment during the next four years. It seems scarcely possible 
that the terrible experiences of free trade coupled with a threat 
of free silver could be so soon forgotten, but as this seems to 
be the only assumption upon which their votes can again be 
asked for those dangerous propositions a few extracts are here 
presented from that generally accepted and always accurate au- 
thority, the American Cyclopedia, on the conditions which existed 
during the Democratic period 1893-1896, in which the actual ex- 
periment of free trade was made, and coupled with its closing 
years the threat of free silver. 

39 



Business and Industrial Record, 1893-1896. 

[From Appleton's Annual Cyclopedia, 1S93, 1S94, and 1895.] 

July 18, 1893: Denver, Colo; four banks close their doors and there are 
runs on other financial institutions. 

July 19: More banks close their doors. 

July 20: Kansas; fight between strikers and nonunion miners at Weir 
City. 

July 22: Two bank failures in Milwaukee and runs on banks in many 
other places. 

July 24: More bank failures in the West. 

July 26: New York; two stock exchange firms fail. 

July 27: Ten banks suspend, most of them Northwestern. Other busi- 
ness failures reported. 

July 28: More failures and suspensions, including nine banks in the 
West and one in Kentucky. 

August 1: Collapse of the Chicago provision deal. Many failures of 
commission houses. Great excitement in the board of trade. 

August 8: The Chemical Bank, one of the strongest in the country, is 
unable to fill its weekly orders for small currency. 

August: Madison Square Bank suspends. 

August 17: Much excitement on east side New York among Hebrew 
laborers. Police called out. 

August 22: Encounter between anarchists and socialists averted by 
police in New York. 

August 23: Meeting of anarchists broken up by police. 

August 30: Kansas coal miners strike ended with nothing gained. 

January 15. 1S94: Secretary of the Treasury Carlisle announces his in- 
tention to issue bonds. 

January 17: The Secretary of the Treasury offers a $50,000,000 loan for 
public subscription, according to his announced intentions. 

January 24: Strike in Ohio of 10,000 miners. 

January 27: A mob of foreign miners destroy property at Brantville, 
Pa., and elsewhere. 

February 16: Many New York silk factories close on account of strike. 

February IS: In Ohio all the mines of the Massillon district closed by 
strike. 

February 20: In Boston a riotous assemblage of unemployed workmen 
dispersed by police. 

March 2: Six thousand miners in Jackson County, Ohio, out of em- 
ployment. 

Paterson, N. J.: General strike among the silk weavers. 

March 3: In West Virginia striking miners burn the railroad bridge and 
commit other lawless acts. 

March 13: At Paterson, N. J. ; riotous proceeding on the part of the 
striking silk weavers. 

March 17: In Colorado Governor Waite orders State troops to Cripple 
Creek to suppress mining troubles. 

March 20: In Boston a large body of unemployed workingmen march- 
to the State House and demand employment. 

March 24: A movement inaugurated in various parts of the Northern 
States, known as the Army of the Commonwealth. Coxeyites, etc., pro- 
posing marching to Washington and demanding help at the hands of 
Congress. 

March 31: Coxeyites are a source of terror to certain Western towns 
upon which they quarter themselves. 

April 1: In South Carolina a large force of State militia is dispatched 
to the scene of the whisky war in Darlington and Florence. 

In Ohio a mob of strikers at East Liverpool becomes riotous and several 
persons are injured. 

April 2: In Chicago 5,000 plumbers, painters, etc., go on a strike. 

At Connellsville, Pa., 5,000 coke workers strike. 

April 3: In South Carolina the governor assumes control of the police 
and declares martial law in all the cities of the State. 

April 4: In Pennsylvania 6 men killed and 1 wounded In coke riots. 

April 13: General strike for higher wages on Great Northern Railway. 

In Alabama: The general council of United Mine Workers orders a 
strike affecting 8,000 men. 

April 16: Strike on the Great Northern spreads to the Northern Pacific. 

April 20: In Omaha a mob seizes a train of box cars and attempts to 
deport Kelly's industrial army, but the army refuses to go. 

April 21: About 150,000 miners stop work in sympathy with the coke 
strikers of Pennsylvania. 

April 28: Arrival of a division of the Coxey army at Washington. 

A division of the Coxeyites arrested at Mount Sterling for holding up a 
railway train. 

United States troops ordered to assist the civil authorities in the far 
West. 

On the Great Northern Railroad system the Knights of Labor are called 
out on strike. 

April 29: Kelly's army, 1,200 strong at Des Moines. 

April 30: Strike of 2.000 painters in Chicago. 

May 1 : Attempted demonstrations of Coxey's army on the steps of the 
Capitol. Leaders arrested. 

May 2: In Ohio a mob of Italians and Poles attack the iron mills, but 
the riot is subdued by the police. 

May 4: Further bloodshed in the coke regions of Pennsylvania; killed 
and wounded on both sides. 

May 0: Kelly's army sails from Des Moines on flatboats. 

May 10: Several deputy marshals and citizens shot In a conflict with 
Coxeyites. 

May 11: Two thousand Pullman car employees strike at Chicago for last 
year's wages. 

May 12: The captured Coxey army is removed to Leavenworth, where 
there is a strong garrison of regulars. 

40 



THE TERRORS OF 1893-6. 41 

May 13: Arrest of a commonweal army by United states marshal at 
Greenriver, Wyoming. 

May 19: Several hundred employees of the Government Printing Office 
dismissed. 

May 19: Considerable detachments of commonweal armies are suffering 
from cold and hunger in the neighborhood of Cincinnati. 

May 25: In Ohio more conflict between striking miners and deputy 
sheriffs. 

May 26: In Pennsylvania the governor goes to the coke regions to use 
his personal influence toward allaying the disturbances. 

In Colorado the governor orders out the militia to suppress riotous min- 
ers at Cripplecrcek. 

May 27: In Illinois the governor orders troops to Minouk, where a mob 
has taken possession of a railway train. 

May 30: In Pennsylvania the governor issues a warning to coke rioters. 

In Ohio: Governor McKinley orders out the militia to prevent inter- 
ference with coal trains. 

June 1: At St. Louis 1.000 carpenters strike. 

General Kelly and his industrial army leave the city. 

June 4: At Washington destitution among the common wealers. 

June 5: Militia ordered out to quell striking miners. 

In Idaho a number of commonwealers sentenced to imprisonment for 
train stealing. 

June 7: In Ohio trains move under the protection of the militia. 

Kelly and his commonwealers abandon their boats at Cairo and resume 
their march on Washington. 

June 9: Nineteen commonwealers sentenced to jail for various offenses. 

June 10: Coal strikers in Pennsylvania killed and wounded in an en- 
counter with sheriffs at Lamont. 

State troops on both sides of the Ohio River harassed by strikers. 

June 11: Continued destruction of railroad property in Ohio and Ala- 
bama. 

June 17: The Indiana miners continue to strike. Striking miners in 
Ohio, Pennsylvania, and West Virginia decide to return to work. 

Twenty-three commonwealers in Illinois sent to jail for train stealing. 

June 18: Wisconsin General Cantwell's industrial army captures a train 
and rides 200 miles. 

At Leavenworth 121 commonwealers sentenced and sent to various 
county jails. 

June 20: On the Gogebic range, Mich., 2,000 miners go on a strike. 

June 21: Governor of Pennsylvania orders out troops to suppress dis- 
orders in Jefferson County. 

In Illinois: Twenty-five strikers indicted by grand jury. 

June 25: In St. Louis and Ludlow, Ky., about 500 employees strike work 
from Pullman Car Company. 

June 20: Boycott against Pullman cars goes Into effect. 

June 27: The Pull man boycott extends to all roads that run to Chicago. 

Industrial army disturbances are thus far reported in 14 States and 2 
Territories. 

June 28: The railway strike spreads so as to include nearly all the great 
railroads between the Mississippi and the Pacific; 

July 30: The month closes with a most threatening state of affairs in 
the West and the Northwest; violence continues to increase at all the 
strike, centers. 

July 1: The Federal Government takes active steps to protect mails in 
transit through the region of disturbance. 

July 2: United States courts at Chicago issue a general order against 
strikers, and United States troops are called out. 

July 3: Strikers bjock the operations of all railways from Chicago west- 
ward. Regulars and State troops in strong force ordered to the scene of 
action. 

July 5: Great destruction of property by rioters at Chicago. 

Encounters with militia at Sioux City, Iowa, and Asbury Park, N. J. 

July 6: Hundreds of cars burned by rioters in Chicago. Governor Alt- 
geld protests against the intervention of United States troops. 

July 7: State troops tire on mob at Chicago. 

United States regulars assume control of the Northern Pacific and Union 
Pacific railroads. 

July 8: Regulars disperse mob at Hammond, Ind. ; 1 killed and 4 
wounded 

July 10: Debs and other labor leaders arrested at Chicago, but released 
on bail. 

General call upon all Knights of Labor to strike. 

Regulars start for Sacramento, Cal., which has been for several days 
under mob rule. 

July 11: About 15,000 workingmen strike at Chicago. 

Strikers wreck a train at Sacramento, Cal., killing the engineer and 3 
soldiers and injuring others. 

July 13: Regulars hie upon a mob at Sacramento. 

A detachment of Kelly's industrial army captures a train in Ohio. 

July 15: Strikers wreck a freight train at Indianapolis. 

July 17: Debs and other leaders sent to jail by Federal court. 

August 10: Two companies of State militia ordered to South Omaha to 
restrain packing-house strikers. 

August 11: An industrial army at Rosslyn, Va., dispersed by State 
troops. 

August 13: Adoption of the amended Wilson tariff bill by both houses 
of Congress. 

August 23: Lockout of 25,000 mill operatives at Fall River. Mass. 

September 15: Strike of 38,000 mill operatives at Fall River, Mass. 

September 20: A general strike of garment workers in Boston ordered. 

September 24: Strike of 3,000 shirt makers in New YorK. 

October 23: Residents of Indian Territory ask the Government to de- 
tail troops for the protection of private property. 

Resumption of strike among the textile workers at Fall River, Mass. 

November 13: Secretary of the Treasury Carlisle issues a call for an- 
other loan of $50,000,000 on flve-per-cent ten-year bonds. 



42 THE TERRORS OF 1893-6. 

January 19. 1805: Brooklyn troops disperse mob at bayonet's point 

January 20: Many conflicts, some of them fatal, between troops ami 
riotous strikers. 

January 25: The Nebraska legislature appropriates £50,000 for seed for 
distressed farmers. 

January 27: In Ohio an encounter takes place between glassworkers and 
troops called out to preserve order. 

February 21: A strike of the building trades- of New York begins. 

February ii4: Strike among New York electrical workers becomes 
serious. 

March 12: A labor and race riot occurs on the levees at New Orleans, 
with six negroes killed and an officer of a British steamship wounded. 

April 9: Extended strike of coat makers in Cincinnati and vicinity. 

April 19: Strike of St. Louis garment makers. 

April 30: Strike of Baltimore garment-makers' union. 

May 1: Strike of 10,000 West Virginia coal miners. 

May 3: West Virginia Federal court issues an injunction against strik- 
ing miners for interference with United States mails. 

May 4: Joint conference of Ohio miners and operators at Columbus; 
about 24,000 miners now on strike. 

May 19: The Pennsylvania miners decide to continue their strike. 

May 22: General strike in the Chicago brickyards. 

May 25: Two men taken from jail at Danville, 111., and lynched because 
mob determined that Governor Altgeld should never have a cfaancte to 
pardon them. 



THE REPUBLICAN PARTY THE TRUE FRIEND OF THE 
LABORING MAN. 

The laboring man should have no difficulty in realizing which 
party is his real friend. From its earliest history the Demo- 
cratic Party has opposed his best interests and from its earliest 
history the Republican Party has advocated principles favorable 
to his best interests. The Democracy favored and voted for 
an attempt to destroy the Union in behalf of a system which 
was most disadvantageous to labor — human slavery. For many 
years that party by its legislation in support of human slavery 
placed the labor of many millions of slaves in direct competition 
with the labor element of the country and would have continued 
it to the present day but for the Republican Party. 

In the matter of protection versus free trade the Republican 
Party has been distinctly the friend of the laboring man and the 
Democracy has been arrayed against his best interests. It is not 
necessary to go into elaborate discussions of this subject. The 
record of the past few years and comparison of present condi- 
tions with those under the low tariff of four years ago are suffi- 
cient evidence of the friendship of the Republican system of 
protection for the laboring man and the hostility to the labor- 
ing interests of the free-trade system under which the suffer- 
ings of the working people of the United States occurred but 
a few years ago. 

In the matter of free homes the record of the two parties is 
equally distinct and clear. The Republican Party originated the 
homestead laws, fought for them, met with Democratic oppo- 
sition and then with a veto by a Democratic President, Bu- 
chanan, but were finally successful, and under that system 
free homes have been given to many millions of people, the 
latest step in that line being the free homes act passed by the 
Fifty-sixth Congress. 

The latest evidence of Republican friendship for the laboring 
man and of Democratic hostility to his interests is found in the 
legislation of last winter on the Porto Rican act. The Repub- 
lican Party saw the necessity of inaugurating such legislation 
as would clearly assert the right to control the relations between 
the United States and the Philippines and thus protect the 
workingman of the United States from the cheap labor of those 
Islands; while the Democrats insisted upon absolute free trade 
between the United States and all island territory of this char- 
acter, which plan, had they been successful, would have brought 
the cheap labor of the Philippines directly in competition with 
the labor of the United States. 

The following statement regarding labor legislation of the 
last 40 years is strikingly suggestive of the attitude of the two 
parties with reference to the workingman: 



LABOR LAWS OF THE UNITED STATES. 

Who Enacted Them? 
The great revolution, by which labor was exalted and the 
country freed from the curse of slavery, was accomplished by 
the Republican party against the fiercest opposition possible by 
the combined forces of the Democrats and their allies. 

The Cooley Trade Prohibited. 

This law was passed February 10, 1862; amended February 9, 
1S69; and further amended March 3, 1875. President Grant, in 
his message of December 7, 1874, laid before Congress a recom- 
mendation for the enforcement of the law. The legislation on 
these several acts was accomplished by the Republicans in 1802, 
in the Thirty-seventh Congress, and' in 1869, in the Fortieth 
Congress. 

Peonage Abolished. 

This act was passed in the Thirty-ninth Congress, when both 
Houses were Republican by a large majority, March 2, 1867. 

Inspection of Steam Vessels. 
Passed during the Fortieth Congress, when the Republicans 
were in power in both Houses. 

Protection of Seamen. 
Passed during the Forty-second Congress, when both Houses 
were under control of the Republicans. It was amended during 
the Forty-third Congress, when the Republicans were in control 
of both Houses. 

Involuntary Servitude of Foreigners Abrogated. 
Passed during the Forty-third Congress, when both Houses 
were under the control of the Republicans. 

Alien Contract Labor. 
Contract-labor law passed the House March 9, 1886. All the 
votes against the bill were Democratic. 

Incorporation of National Trades Unions. 
Passed, the Senate June 9, 1886, without division. Passed the 
House June 11, 1886, without division. 

Payment of Per Diem Employees for Holidays. 
Passed without division in the Forty-ninth Congress, second 



Labor of United States Convicts — Contract System Prohibited. 
Passed the House March 9, 1886. Passed the Senate February 
28, 1887. All the votes against the bill were Democratic. 

Boards of Arbitration. 
Passed the House on April 3, 1886, with thirty votes against 
the bill, all being Democratic. 

Hours of Labor, Letter Carriers. 
Law limiting letter carriers to eight hours a day. Passed in 
the Senate without division. 

Department of Labor. 
Passed the House April 19, 1888. Passed the Senate May 23, 
1888. All votes cast against the bill were Democratic. 

Alien Contract Labor. 
Passed the House during the Fifty-first Congress without divi- 
sion August 30, 1890. Passed the Senate with verba! amendments 
Kepi ember 27, 1890. 

43 



THE WAR WITH SPAIN AND ITS 
RESULTS. 

The general facts relating- to the war with Spain are so 
well known that their discussion is unnecessary; but it is proper 
to present in a work of this kind a statement of the dates of the 
principal occurrences in their chronological order and the im- 
portant documents bearing" upon their discussion, etc. 

The national platform of the Republican party adopted at St. 
Louis in 1896 said: "From the hour of achieving their own inde- 
pendence, the people of the United States have regarded with 
sympathy the struggles of other American peoples to free them- 
selves from European domination. We watch with deep and 
abiding interest the heroic battle of the Cuban patriots against 
cruelty and oppression, and our best hopes g'o out for the full 
success of their determined contest for liberty. The Government 
of Spain having lost control of Cuba and being unable .to pro- 
tect the property or lives of resident American citizens or to com- 
ply with its treaty obligations, we believe that the Government 
of the United States should actively use its influence and good 
offices to restore peace and give independence to the island." 

Contrast the above with the platform declaration of the Dem- 
ocratic party, which simply said in a single sentence: "We 
extend our sympathy to the people of Cuba in their heroic "strug- 
gle for liberty and independence;" while the Populist platform 
contented itself with tendering sympathy to the patriotic people 
of Cuba and remarking that "We believe the time has come when 
the United States should recognize that Cuba is and of right 
ought to be a free and independent State." 

Americans in Cuban Prisons Released. 

When President McKinley was inaugurated, on March 4, 1897, he 
found 28 American citizens languishing in Cuban prisons, where 
they had been placed under various pretexts, chiefly that they 
had co-operated in some way with the insurgents. Many of 
these had been so held for many months and the preceding 
Administration had been unsuccessful in its efforts to bring- 
about their release. The matter was taken up promptly and vig- 
orously by President McKinley's Administration and within a 
few weeks the entire number had been liberated. 

Democratic Administration Had Declined to Act. 

In all matters pertaining to Cuba the Democratic Administra- 
tion had shown a disinclination to act with vigor. A resolution 
which passed the Senate on February 28, 1896, by a vote of 64 
yeas to 6 nays proposed that "the friendly offices of the United 
States should be offered by the President to the Spanish Govern- 
ent for the recognition of the independence of Cuba," and a 
substitute for this was adopted by the House, declaring that 
"Congress believing that the only permanent solution of the con- 
lost, equally in the interest of the people of Cuba and other na- 
tions would b* the establishment of a Government by the choice 
of the people of Cuba, it is the sense of Congress that the Gov- 
ernment of the United States should use its good offices and 
friendly influence to that end." 

This resolution was accepted by the Senate as a substitute for 
its own and agreed to on March 2, 1S96 — more than a year before 
the inauguration of President McKinley — but no action had been 
taken upon it up to the date of his inauguration. 

Intervention Demanded by All. 

The barbarous treatment of the people of Cuba — men, women 
and children — by General Weyler increased the popular demand 
for mediation by the United States, and, if that should prove un- 
successful, for forcible intervention. Soon after the inaugura- 
tion of President McKinley vigorous diplomatic representations 

44 



OUTLINE OF THE WAR WITH SPAIN. 15 

were made to the Spanish Crown, and under this pressure the 
Spanish Government reluctantly promised to ameliorate the rigor 
of its policy. General Weyler was recalled, the concentration or- 
der which caused such terrible suffering* and starvation was re- 
voked and the United States was reluctantly permitted to send 
supplies to the suffering people. Obstruction was made to the dis- 
tribution of food, medicine and clothing sent by sympathetic 
Americans; consuls were threatened with violence for perform- 
ing this act of Christian charity, and finally a letter written by 
the Spanish Minister De Lome, grossly reflecting upon President. 
McKinley, was made public, resulting in great public indignation, 
in recognition of which Minister De Lome immediately left the 
country; and although the sentiments were disavowed by Spain 
no action was taken by the Spanish Government in regard »to it. 

The Maine. 

In .January, 1898, the battle ship Maine was sent to Havana 
after a clear understanding between the American and Spanish 
Governments to the effect that the incident possessed only a 
friendly significance and that the Spanish Government would 
send one of its battle ships to New York in a similar spirit. 
During the same month food, medicine and nurses were sent to 
Cuba for the relief of the suffering there, and the distribution of 
food in Havana began. This was immediately followed by ex- 
pressions of disapproval and manifestations of hostile feelings 
towards Americans, and on the night of February 15, 1898, the 
battle ship Maine was blown up in the harbor of Havana, causing' 
the loss of life of 2G6 men and 2 officers. 

The growing sentiment in favor of action by the United States 
to put an end to the cruelties of the Spanish in Cuba was greatly 
increased by this incident, and although Captain Sigsbee asked 
that "public opinion should be suspended until further report," 
and a thorough investigation as to the causes of that disaster was 
authorized, President McKinlc}' felt it his duty to immediately 
take steps looking to national defence, and, if necessary, offen- 
sive operations. He therefore invited the leaders of both polit- 
ical parties in Congress to confer with him at the "Wftiite House, 
the result being that a bill was introduced on March 8 appro- 
priating $50,000,000 for national defence and giving the President 
discretionary power in its use, which bill was passed after a de- 
bate lasting only four hours, the vote in House and Senate be- 
ing unanimous. It may be added that this was the only occa- 
sion upon which the Democrats and Populists voted unanimously 
to support any proposition offered by the Republican leaders 
for the conduct of the Avar. This money was expended for the 
purchase of ships and equipments for troops, but in the utterly 
unprepared condition for war was but a beginning of the expen- 
diture necessary in that line. 

The Demand upon Spain — Action by the President and 
Congress. 

On March 28 the President sent to Congress a message trans- 
mitting the findings of the Naval Poard which had inquired into 
the destruction of the Maine, and on the following day Senator 
Foraker introduced resolutions recognizing the independence of 
Cuba, stating that the cruelties of the war make it the duty of 
the United States to demand that Spain withdraw her land and 
naval forces from Cuba and auhorizing and directing the Presi- 
dent to use the land and naval forces of the United States to 
carry the resolution into effect. On April 2 a Spanish flotilla 
arrived at Porto Rico; on April 3 Consul Hyatt left Santiago de 
Cuba, and on April 10 General Lee, who had remained at his post 
to superintend the departure of American refugees, took his de- 
parture from the island. As soon as this had been accomplished 
the President on April 11 sent to CongTess his message review- 
ing the intolerable condition of the island and declaring that 
war must be stopped but advising against the recognition of the 
Insurgent Government as liable to subject us to embarrassing 
conditions of international obligations toward the organization 
so recognized, and asking Congress to take action in the whole 
matter. On April 12 the Republican members of the Ways and 



46 OUTLINE OTB Iflifl WAR WITH SPAIN. 

Means Committee completed a plan for raising the revenue for 
the war, and on April 13 the Republican Chairman of the Foreign 
Relations Committee, Senator Davis, reported resolutions based 
upon those introduced by Senator Foraker, declaring, first, 
"that the people of the island of Cuba are and of 
right ought to be free and independent; second, that the Govern- 
ment of the United States hereby demands that the Government 
of Spain relinquish its authority in the island of Cuba and with- 
draw its land and naval forces, and third, that the President be, 
and hereby is, directed and empowered to use the land and naval 
forces of the United States and call into service the militia, if 
necessary, to carry these resolutions into effect." During the 
discussion a statement was added declaring that the United 
States disclaims any disposition to exercise sovereignty or con- 
trol over the island except for the pacification thereof. Meantime 
the Republicans in the House presented a resolution authorizing 
the President to intervene at once to stop the war in Cuba and 
to use the land and naval forces of the United States for that 
purpose. Each body passed formally its own resolution and 
these were referred to a Conference Committee, which on April 
18 reported as follows: 

"First. That the people of the Island of Cuba are and of right 
ought to be free and independent. 

"Second. That it is the duty of the United States to demand, 
and the Government of the United States does hereby demand, 
that the Government of Spain at once relinquish its authority 
and government in the Island of Cuba and withdraw its land and 
naval forces from Cuba and Cuban waters. 

"Third. That the President of the United States be, and he 
hereby is, directed and empowered to nse the entire land and 
naval forces of the United States, and to call into the actual serv- 
ice of the United States the militia of the several States, to such 
extent as may be necessary to carry these resolutions into effect. 

"Fourth. That the United States hereby disclaims any disposi- 
tion or intention to exercise sovereignty, jurisdiction, or control 
over said island except for the pacification thereof, and asserts its 
determination that when that is accomplished to leave the gov- 
ernment and control of the island to its people." 

Opposition Tactics of Democratic Politicians. 

In the House Representative Mr. Bailey (Dem.) attempted to de- 
lay action by precipitating a debate, but this effort was averted 
by a ruling by Speaker Reed and the resolutions were adopted; 
yeas, 311; nays, 6; not voting, 38. These resolutions w r ere adopted 
in House and Senate on April 19, the day following their report 
from the Conference Committee, and on the following day the 
ultimatum of the Government was handed to the Spanish Minis- 
ter and he immediately left the country, while the Spanish Gov- 
ernment one day later handed Minister Woodford his passports 
before he could formally lay the ultimatum of the United States 
Government before the Spanish Government. On April 25 the 
President sent a message to Congress detailing the occurrences 
above referred to and recommending the adoption of a joint reso- 
lution declaring that a state of war exists between the United 
States of America and the Kingdom of Spain. This resolution 
was immediately adopted by the House and Senate and active 
preparations for the war began. 

Chronology of the War. 

April 26 Chairman Dingley reported back from his Committee 
to the House the bill to provide ways and means for war expend- 
itures, while all over the country began the movement of volun- 
teer troops. The regular army had previously been set in motion, 
and was hurrying to Chickamauga and other southern rendezvous 
since the 19th. On the 2Sth came the announcement thatanAmeri- 
can squadron under Commodore Dewey had sailed from Hong- 
kong under orders to capture or destroy the Spanish fleet at 
Manila, capital of the Philippine Islands, off the coast of China; 
but the first shot was fired in Cuban waters on the 2Uh, when 
Die r.hips of Admiral Sampson bombarded the forts of Matanzas, 
iuJlowed on the 29t,h by a bombardment of Fort Cabanas. 



OUTLINE OF THE WAR WITH SPAIN. 47 

On the 1st day of May Commodore Dewey sailed into the har- 
bor of Manila and there a\ rough t one of the most famous victo- 
ries in the rich annals of American naval exploits, by destroying 
the entire Spanish squadron under Admiral Monte jo, practically 
reducing - the fortifications of Cavite and investing the citadel of 
the Philippines. This great victory, which resulted in the annihi- 
lation of all the Spanish ships in those waters and the death of 
hundreds of Spanish sailors, was gained without the loss of a 
man on our side from Spanish fire. 

Early in the month it became known that another Spanish 
squadron, under Admiral Cervera, had sailed from the Canary 
Islands with the supposed purpose of succoring Havana. Its 
movements were so well concealed that for nearly ten days it 
puzzled Sampson, who, anticipating its objective point to be 
Puerto Kico, vigorously assaulted the defences of San Juan on 
the 12th, but without effect. The Spanish fleet was reported the; 
next day at Martinique and again disappeared. 

On the 11th a part of our blockading fleet attacked Cardenas, 
and the torpedo boat Win slow was battered by a storm of lead 
from the Spanish defences' and Ensign P.agley killed by a shell.. 

Tlie news of Cervera's presence at Martinique hastened the de- 
parture of the Norfolk squadron under Admiral Schley to join 
Sampson. Schley sailed around the western point of Cuba on re- 
ceiving news that Cervera had been hailed off the Island of Cura- 
coa, in the Caribbean Sea, and looked for him in the harbor of 
Cienfuegos; but on learning that the Spaniard had made a short 
cut to Santiago de Cuba, Schley made sure that the Spanish 
squadron had safely entered that port May 19, then blockaded it, 
May 29. The succeeding events can be told in short order: 

May 25 — The Charleston leaves San Francisco with troops for 
Manila, 115 officers and 2,386 men, General Anderson command- 
ing. This first expedition was followed June 15 by 158 officers 
and 3,428 men under General Greene, and June 27 by 197 officers 
and 4,650 men under General MacArthur; a total of 470 officers 
and 10,464 men. 

May 25 — The President calls for 75,000 additional volunteers. 

May 26— Arrival of the battle ship Oregon at Key West from 
San Francisco, after much anxiety as to its safety. 

May 29 — General Shartef ordered to embark for Cuba with an 
army of invasion, about 17,000 men. 

May 30 — Schley bombards the fortifications at the entrance of 
the harbor of Santiago de Cuba. His squadron is merged into the 
fleet of Admiral Sampson upon the latters' return from Porto 
Rico. 

June 3 — Naval Constructor Hobson sinks the collier Merrimac 
at the mouth of Santiago harbor with heroic disregard of life, 
and he and his volunteer crew of six men are taken iirisoners 
by Cervera. 

June 4 — Death of Captain Charles V. Gridley, of the Olympia, 
at Kobe, Japan. 

June 11 — Landing of marines at Guantanamo, Cuba. 

June 12 — Skirmish of Guantanamo. 

June 14— Army of invasion sails from Key West under General 
Shatter. 

June 20 — Army in transports arrive off Santiago de Cuba. 

June 21 — Guantanamo in telegraphic communication with the 
War Department. 

June 22— Landing of Shaffer's troops at Daiquiri. 

June 24 — Sharp battle within five miles of Santiago. 

June 28 — Proclamation by the President blockading additional 
ports on Cuban coast line. 

July 1 — First day of the battle before Santiago. 

July 2 — General Shatter captures San Juan, a suburb of San- 
tiago, with an American loss of about 1,000 men. 

July 3 — Dewey's victory duplicated by the annihilation of the 
Spanish squadron and capture of Admiral Cervera with 1,600' 
men. General Shatter demands surrender of Santiago, but. 
surrender is refused, and Spaniards are reinforced. Upon 
request of foreign consuls permission granted to nonconi- 
batants to leave the city, and bombardment delayed pending the 
arrival of reinforcements for Shaffer's army. 



48 OUTLINE OF THE WAR WITH SPAIN. 

July 3 — The seizure of Guam, in the Ladrone Islands, by the 
Charleston was reported. 

July 7 — President McKinley signed resolutions passed by Con- 
gress annexing the Hawaiian Islands to the United States, and 
the Philadelphia was ordered to Honolulu to raise the American 
flag-. 

July 17 — General Toral, in command of the Spanish troops a1 
Santiago, General Linares being- wounded, surrendered his forces 
and the eastern portion of the province of Santiago de Cuba to 
General Shatter. 

July 20— General Leonard R. Wood, formerly colonel of the 1st 
Volunteer Cavalry, was appointed military governor of Santiago. 

July 25 — United States troops, under General Nelson A. Miles, 
landed at Guanica, Puerto Rico, the town having- surrendered to 
the Gloucester after a few shots. 

July 26 — Through the French Ambassador, the Government of 
Spain asked President McKinley upon what terms he would 
consent to peace. 

July 28 — Ponce, the second largest city in Puerto Eico, surren- 
dered to General Miles, and he was received by the residents 
with joyful acclamations. Capture of several other towns, with 
little or no figiiting, followed. 

July 30 — President McKinley's statement of the terms on which 
he would agree to end the war was given to the French Ambas- 
sador. The President demanded the independence of Cuba, ces- 
sion of Puerto Rico and one of the Ladrones to the United States, 
and the retention of Manila, by the United States pending the 
final disposition of the Philippines by a joint commission. 

July 31 — United States troops engaged the Spaniards at Malate, 
near Manila, in the Philippines, and repulsed them, with some 
loss on both sides. 

August 9 — The French Ambassador presented to President Mc- 
Kinley Spain's reply accepting - his terms of peace. 

August 12 — Protocols agreeing as to the preliminaries for a 
treaty of peace were signed by Secretary Day and the French 
Ambassador. United States military and naval commanders were 
ordered to cease hostilities. The blockades of Cuba, Puerto Rico 
and Manila were lifted, and the war was ended. 

August 13 — Manila surrenders to the combined American forces 
under General Merritt and Admiral Dewey after a short bom- 
bardment. Governor General Augusti makes his escape by the 
Kaiserin Augusta, a German war ship, and is landed at Hong 
Kong. 

(For protocol and peace treaty see page 348.) 



PATRIOTISM SUBORDINATED TO PARTISANSHIP. 

From the moment war was declared the Democrats in Con- 
gress and the Democratic press of the country began a system- 
atic attack upon the methods of the President, criticising first 
the delay in beginning of actual hostilities, although it was well 
known to those who chose to inform themselves that this delay 
was absolutely necessary by reason of the unprepared condition 
of the army, navy and coast defences for war — facts which could 
not be publicly discussed for the information of the enemy, but 
which were well known to those at all familiar with the situa- 
tion. The debates in Congress from the beginning bristled with 
Democratic opposition to the methods of the Republican leaders 
and officials and with attacks upon the Administration. The bill 
to provide funds to meet war expenditures (better known as the 
War Revenue Act of 1898) was criticised and elaborately dis- 
cussed and action would have been indefinitely delayed but for 
the power to absolutely limit debate by action of the majority. 
On final passage 78 Democrats, 13 Populists and 8 Fusionists 
voted against the bill, while only 5 Republicans cast their votes 
against it, and they did so on technical grounds; while in the 
Senate every Republican voted for it and every Democrat except 
8 against it. ,\ot only did the Democrats embarrass and put 
themselves on record against the measure, but attempts were 
made to burden the bill with Populistic and absurd measures in 



OUTLINE OF THE WAR WITH SPAIN. \n 

order to embarrass its supporters in their efforts to bring it to i 
speedy vote in recognition of the emergency -which called for it. 
Senator Pettigrew offered an anti-trust amendment; Senator Mil Is 
proposed a horizontal reduction of duties levied by the Dingiey 
law; Senator Pettigrew offered another amendment to take away 
from 1 lie Secretary of the Treasury the power to issue bonds 
under the Act of 1875 for maintaining- the standard of the cur- 
rency of the country; Senator Allen offered an amendment pro- 
posing that bonds should not be used as a basis for bank circula- 
tion ; Senator Jones, the Chairman of the Democratic National 
Committee, offered an amendment striking* out the 10-year re- 
demption clause in the bond measure, and another limiting the 
bonds to three years, and Senator Turpie offered an amendment 
providing for two-per-cent emergency notes, and another limit- 
ing the terms of certificates. 

Notwithstanding the fact that the Democrats and Populists 
combined to embarrass the Republican Administration and party 
in the conduct of the war upon which the nation, at the command 
of all classes, had entered, it moved steadily forward through the 
steps which have already been noted and the peace protocol was 
followed by the appointment of a Peace Commission by President 
McKinley on August 26, 1898, consisting of Hon. William R. Day. 
former Secretary of State; Hon. Cushman K. Davis, U. S. S.; 
Hon. William P. Frye, U. S. S.; Hon. George Gray, U. S. S., and 
Hon. Whitelaw Reid, of New York. This Commission arrived in 
Paris on September 27 and held the first session September 29. 
The Spanish Commission, which had been appointed on Septem- 
ber 18, met with the American Commissioners on October 1, and 
from that time forward sessions were held from time to time 
until November 21st, when the treaty was agreed upon. It was 
signed December 12. (For copy of protocol and treaty see 
page 348.) 

On January 4, 1899, the treaty was transmitted by the Presi- 
dent to the Senate together with a report of the Commission and 
copies of statements made before it. From the moment of its 
arrival the Democratic policy of fault-finding continued to em- 
barrass, and to the last moment there were serious doubts as to 
whether it would receive the necessary two-thirds for ratification. 
On this subject some interesting developments have since come to 
the surface indicating that Mr. Bryan, although opposed to the 
policy of obtaining control of the Philippines, and expressing the 
belief that the proposition would be to the disadvantage of the 
people affected, visited Washington and advised members of his 
party to vote for the treaty apparently for the purpose of giving 
to his party material which they believed would be advantageous 
from a purely partisan standpoint and without reference to the 
fact that such vote would bind the nation to a policy which he 
himself professed to believe an injudicious one and an injustice to 
the Filipinos. The statement that Mr. Bryan resigned and 
vi sited Washington to urge the ratification of the treaty was 
made in a letter written by a prominent officer of Colonel 
Bryan's regiment and widely published in Nebraska in 
1899. On the ratification of this treaty, which took place 
February 6, 1S99, the vote stood: yeas, 57; nays, 27 — but one more 
than the necessary two-thirds. Ten Democrats, 3 Populists, 3 
members of the Silver party and one Independent voted for the 
treaty and it was only by their votes that it was ratified. This 
ratification by Democratic and Populist votes took place after the at- 
tack upon the American force* by Aguinaldo's troops, and uith it full knowl- 
edge that its ratification would compel tlic President to proceed with the sup- 
pression of the 'insurrection then begun. 

The treaty was signed on March 17 by the Queen Regent of 
Spain, a little more than one month after its ratification by the 
United States Senate. 



The Republican Party broke the shackles of 4,000,000 
slaves and made them free, and to the Party of Lincoln has 
come another supreme opportunity which it has bravely met 
in the liberation of ten millions of the human family from 
the yoke of imperialism. — President McKinley to the Notifica- 
tion Committee, July 12, 1900. 



CUBA. 

Outline of Important Events in the Island During and Since 

the War. 

The sole purpose of the war with Spain was to liberate the 
people of Cuba from the oppression of the Spanish Government, 
which included excessive and unjust taxation and the cruelties 
and inhumanities which accompanied the war between the peo- 
ple of Cuba and the Spanish Government which had been in pro- 
gress since 1895 and which was in fact a resumption of the for- 
mer revolution, which lasted from 1868 to 1878 and terminated 
only on the representation that the Spanish Government would 
make such reforms as would remove the grounds of complaint 
on the part of the Cuban people. The promises made in 1878 
were not carried out, taxes were levied on everything* conceiv- 
able, offices in the island were increased and all important posi- 
tions filled by Spaniards, and laws so framed that natives were 
substantially deprived of the right of suffrage, the heavy collec- 
tions being utilized chiefly to pay interest on the enormous debt 
which Spain had saddled upon the island and to pay the salaries 
of the army of Spanish office holders. The resumption of the 
revolution of 1868-78 began when the Cubans on February 24, 
1895, declared a separation from the Spanish monarchy, and 
fighting between the Spanish troops and the Cuban forces soon 
began. By March the Cuban army of liberation, as it was called, 
was said to number 43,000, and as they made headway against the 
Spanish forces during that year, General Weyler was sent by the 
Spanish Government to Cuba in January, 1S96, to take charge of 
the campaign against the Cubans. His course is so well known that 
details need not be given. It was characterized by Senator Sher- 
man in the United States Senate as "that of a demon rather than 
a general." Butcheries and outrages were committed ag-ainst 
peaceful men and women, as well as Cuban soldiers, and the 
crowning act which led to intervention by the United States Gov- 
ernment was the order Of concentration issued in October, 1896, 
by which the helpless rustic population were forced to leave their 
homes and concentrate within military zones, where they under- 
went not only the greatest suffering, but actual starvation. Pub- 
lic attention was sharply called to the situation by resolutions 
and discussions in Congress, but the Democratic Administration 
then in control of the United States Government took no action 
and it remained for the Administration of President McKinley 
to initiate and carry to a successful conclusion the war for the 
relief of this suffering people. 

The protocol Avhich ended hostilities between Spain and the 
United States, signed August 12, 1898, provided that "Cuba, Porto 
Eico and other Spanish islands in the West Indies shall be im- 
mediately evacuated" and that "commissioners to be appointed 
within ten days shall within thirty days from the signing of the 
protocol meet at Havana and San Juan, respectively, to arrange 
and execute the details of the evacuation." The peace treaty, 
signed in Paris, provided, as its first article, that "Spain 
relinquishes all the claim of sovereignty over, and title to 
Cuba, and as the island is upon its evacuation by Spain 
to be occupied by the United States, the United States will, so 
long as such occupation shall last, assume and discharge the 
obligations that may, under international law, result from the 
fact of its occupation for the protection of life and property." 

The United States in Control. 

On January 1, 1899, Spain relinquished its sovereignty in Cuba 
and the Stars and Stripes replaced the standard of Spain. 
The last of the Spanish soldiers embarked for Spain 
on February 6. The island was divided into seven 
military departments, a. military government was estab- 
lished to maintain order and direct the affairs of the island pend- 
ing such provision as the Congress of the United States might 
make for the control of the island until the native government 

50 






CUBA SINCB THE 0LO8E OF TUB WAR. 51 



should be established, the distinct declaration of Congress in 
entering- upon the work having been that "the United States 
hereby disclaims any disposition or intention to exercise sov- 
ereignty, jurisdiction or control over said island except for the 
pacification thereof, and asserts its determination when that is 
accomplished to leave the government and control of the island 
to its people." General Brooks, of the United States Army, was 
appointed Governor-General of the island, and in assuming con- 
trol issued a proclamation outlining the purposes of the Govern- 
ment, saying: "The object of the present government is to give 
protection to the people and security to person and property, 
to restore confidence, to encourage the people to resume the pur- 
suits of peace, to build up waste plantations, to resume commerv 
cial traffic, and to afford full protection in the exercise of all civil 
and religious rights." 

A perplexing question which confronted the Government of the 
pirated States was what disposition should be made of the in- 
surgent army. The Cubans were not agreed among themselves 
as to the proper course to be followed, but a Commission of 
Cubans sent to Washington, after placing the matter before 
the President and his advisers, agreed to the disbandment of the 
army in case the United States Government would advance the 
sum of $3,000,000 to be distributed among the troops upon the 
surrender by them of their arms. The agreement specifically 
stated that "The sum paid to each man shall not be regarded as 
part payment of salary or wages due for services rendered, but 
to facilitate the disbandment of the army, as a relief of suffer- 
ing and as an aid in getting the people to work." The payments 
under this agreement began in May, 1899, and were completed 
September 21, the total number of soldiers paid being 33,930, 
each one receiving $75. 

Work of the Military Government in Cuba. 

The efforts of the military government in Cuba were elueily 
in three directions: First, toward the re-formation of the courts, 
which were so corrupt under Spanish rule as to have utterly de- 
stroyed their usefulness or value as mediums of dispensing jus- 
tice; second, the establishment of a proper educational system 
in the island, and, third, the improvement of the sanitary condi- 
tions of the cities. The courts were, during the year 1899, re- 
modeled, and have gained the respect and confidence of the cit- 
izens of the island. Schools were opened wherever practicable 
and a large number of native Cubans placed in charge to take up 
the educational work, and the sanitary work in the cities was 
pushed forward with great success, especially in Santiago and 
Havana, the result being that despite the war conditions which 
had so long prevailed, the island passed through the summer of 
1899 with an unusually small loss of life from those diseases pe- 
culiar to these conditions in a tropical climate. On August 17, 
1899, President McKinley issued a proclamation to the people of 
Cuba, announcing the census as a preliminary step to preparations 
for the establishment of civil self-government, which the people 
of that island had so long desired, saying: "The disorganized 
condition of your island resulting from the war and the absence 
of any generally recognized authority aside from the temporary 
military control of the United States have made it necessary 
that the United States should follow the restoration of order and 
peaceful industry by giving its assistance and supervision to the 
successive steps by which you will proceed to the establishment 
of an effective system of self-government." The direction of 
the temporary government of Cuba was transferred to General 
Wood in 1900, General Brooke having- been relieved of that duty 
at his own request. 

The Postal Frauds. 

In May, 1900, officials of the United States Government dis- 
covered that certain officers appointed to conduct the postal serv- 
ice of Cuba had been guilty of misappropriating sums of money 
to their own uses, and a prompt and vigorous investigation and 
preparations for the punishment of these offences was begun, 
and a resolution was introduced in Congress providing for the 



52 CUBA SINCE THE CLOSE OF TUE WAR. 

^funding by the United States Go\ ernnicnt to the Cuban Gov 
eminent of whatever sums had been wrong-fully taken from it 
in this manner. The President directed General Bristow, the 
Fourth Assistant Postmaster General, to immediately proceed to 
Cuba, accompanied by a corps of experts, to make a thorough in- 
vestigation. C. W. F. Neeley, who was charged with the mis- 
appropriation of these funds, and who was at the time in the 
United States, was arrested; a measure was immediately pre- 
pared and passed through both branches of Congress clearing 
away any legal technicalities which might arise by reason of tin; 
peculiar temporary conditions existing between the United States 
and the Island of Cuba. It is proper to add that this event was 
seized upon, magnified and distorted for partisan purposes, as in- 
deed has every event since the war with Spain began, in which 
any possible opportunity could be found to embarrass the Ad- 
ministration and make temporary political capital, no matter 
with how little foundation, against the Republican party. That 
the action of the Administration was prompt and vigorous for 
the punishment of these crimes in Cuba, as well as for the com- 
plete understanding of all matters of this character at all times, 
is shown by the documentary statements, page 368, showing the 
orders of the Postmaster General, with reference to the inves- 
tigation of the postal frauds in Cuba, the findings of the Board 
which investigated army contracts, the report of the Philippine 
Commission, etc. 

The Island and Its Commerce. 

Physically the Island of Cuba is described by Consul Hyatt as 
775 miles in length, the width varying from 30 to 160 miles, and 
the area about equal to that of the State of Pennsylvania. Al- 
though settled nearly 50 years before the United States, it still 
has over 15,000,000 acres of primeval forests. In mineral wealth 
its possibilities are, according to Mr. Hyatt, very great, especially 
in copper and the high grades of iron ore. Its chief value is in 
the adaptability of the soil and climate for the cultivation of 
coffee, tobacco, sugar, hemp, sisal, fruits and other productions 
of a tropical character, for which the United States now expends 
vast sums of money in foreign lands. The principal imports of 
Cuba, like those of most tropical countries, are manufactured 
goods, provisions and breadstuff's, for all of which the United 
States is now seeking a market abroad and of which her exports 
to Cuba in the fiscal year 1900 amounted to more than $25,000,000, 
which was in excess of the amount exported to the island in any 
preceding year, not excepting even the years during which reci- 
procity under the McKinley act gave us a greatly enlarged mar- 
ket in that island. The consuming power of the island under 
normal conditions has in the past ranged at from $50,000,000 to 
$70,000,000 per annum, and with the development which will 
come with the opening up of the interior when railways make 
access to all parts of the island practicable there is every' reason 
to believe that the island will offer annually a market for fully 
$100,000,000 worth of products of the United States. 

Steps for an Early Independence for Cuba. 

That the Administration is carrying forward with the great- 
est promptness the pledges made for the independence of Cuba 
is further shown by the fact that an election for delegates to 
a constitutional assembly has been set for the month of Septem- 
ber and the constitutional assembly itself will meet in November 
of the present year with the purpose of establishing within a 
few months the absolute independence of the island, which was 
promised before the first step was taken to free it from the tyr- 
anny of Spain. That the United States should have been able in 
so short a time to put the island into such condition as to ren- 
der it practicable to take these steps for the establishment, at 
such an early date, of an independent government was not antic- 
ipated by even the most sanguine friend of Cuban independence. 

No island ever offered worse conditions for redemption from 
disorder and for the creation of prosperity. A seventh of the 
population had in three years perished of hunger, as General 
Wilson showed in Matanzas. A tattered but brave army o% 



CUBA SINGE THE CLOSE QF THE WAR. 53 

men, which had held 200,000 Spanish troops at buy, sullenly de- 
manded immediate independence, and could at a word have be- 
gun a resistance that might have lasted months. .The warfare 
of three years had destroyed property on sugar plantations which 
Mr. J. L. Hance, long our consul at Cardenas, estimated at $868,- 
000,000. A yield of 1,000,000 tons of sugar haTl dropped to 250,000, 
and in the same three years, 1896 to 1899, the yield of cane sugar 
elsewhere had risen from 2,186,000 tons to 2,569,178 tons, so that 
the market for half the shrinkage in the Cuban crop had been 
made good. The loss in live stock had been as heavy as in ma- 
chinery. In Matanzas alone, in three years, 364,000 cattle had 
sunk to 66,000, 96,000 horses to 19,000 and 18,000 mules to 8,000. 

Losses like these had taken place all over the island. Starv- 
ing and poverty-stricken, other difficulties faced Cuba. Of the 
population over 10 years of age one-half was illiterate. Sanitary 
improvements were unknown, and Havana was one of the two 
great nests of yellow fever. The cynical corruption of centuries 
was certain to tempt and to test every honest official and submit 
the weak or dishonest to temptation, to peculation and extrav- 
agance unknown in lands less rotten. 

In this terrible problem no element of danger, difficulty or 
degradation was absent. Yet in two years from conquest and 
eighteen months after formal occupation the summous has been 
issued to the choice of a constitutional convention. The Cuban 
army was peacefully dissolved and its strongest division became 
the efficient police of Havana. Order and security exist over the 
island. Freedom for marriage and sepulture have come. The 
revenues have been freed from a debt charge of $12,602,000 and 
military charges of $5,896,000. The Spanish army was supported 
by Cuba; ours pays its own bills. Where nothing had been 
spent for sanitation, in 1899 $3,052,282 was devoted to this re- 
form, and in Havana alone deaths from yellow fever in August, 
1899, dropped to ten, where in the last year of peace, 1896, they 
had been 296 in the same month. In Santiago, to take one in- 
stance, the water supply was doubled, the death rate halved, the 
birth rate increased, sewage introduced and yellow fever sup- 
pressed. Throughout all the islands these changes went on. 
Out of nearly 300,000 children of school age only 49,414 had ever 
been in a schoolhouse. To-day Cuba has a school system cover- 
ing the island, and in the summer of 1900 2,500 of its teachers are 
enjoying the hospitality and and sharing the instruction of the 
oldest and most conspicuous univei'sity in America. Courts have 
been purified and bribery in them has been exposed and pun- 
ished. Fraud and corruption have been as unsparingly attacked 
in American as in Cuban appointees. Such cases have been an in- 
significant share of the numerous appointments made and the 
large expenditure entailed. Every charge has been sifted, and 
the agg-regate has been trivial measured by the task. 

In a year an island which had not known security on its roads 
for a generation was safe. Last Spring municipal elections were 
held which demonstrated the possibilities of self-government. 
City self-government already exists. Monopolies have been abol- 
ished and odious occupation taxes repealed. No concession has 
been made. No charters have been issued. No Cuban bond has 
been sold. All were predicted. None have come. As Mr. Car- 
den, the British Consul General, declares in his last report, this 
has delayed the development of the island. It undoubtedly has; 
but the American Government and people have determined that 
our trusteeship should be above the shadow of suspicion. 



No political outcry can abrogate our treaty of peace with 
Spain, or absolve us from its solemn engagements. * * * 
We must choose between manly doing and base desertion. 
It will never be the latter.— President McKinley before Ohio 
Society of New York, March 3, 1900. 

•The war was inaugurated for humanity; its settlements 
must not overlook humanity. It was not commenced in bit- 
terness. It was not commenced in malice. It was commenced 
in a spirit of humanity, of freedom, to stop oppression in a 
neighboring island. We cannot shirk the obligations of the 
victory if we would, and we would not if we could. — President 
McKinley at Indianapolis, Oct. 21, 1898. 



PORTO RICO. 

Porto Rico came to the United States as an incident of the wai 
with Spain, its preliminary occupation being that of an invasion 
and seizure of an enemy's territory, which unless occupied by 
our own forces would prove a base of operations for the military 
and naval forces of the enemy. The American forces landed at 
Guanica, on the southern shore of the island, July 25, 1898, 
and at other points during the days immediately following, meet- 
ing with comparatively little opposition. The decisive combat be- 
tween the American forces and the Spanish troops on the island 
was about to begin w^hen a telegram was on August 12 received, 
announcing the signing oi the peace protocol. In many in- 
stances the American troops were received with evidences of 
enthusiasm by the citizens and welcomed as deliverers from 
Spanish rule. 

General Miles' Proclamation. 

General Miles on landing issued a proclamation to the 
people of the island, which has often been referred to as prom-' 
ising them citizenship and participation in the government and 
affairs of the United States, a privilege in excess of those granted 
by the Porto Rican act. That proclamation, which is quoted in 
full elsewhere, said: "In the prosecution of the w T ar against the 
Kingdom of Spain by the people of the United States in the 
cause of liberty, justice and humanity, its military forces have 
come to occupy the island of Porto Rico. They come bearing the 
banner of freedom, inspired by a noble purpose to seek the 
enemy of our country and yours and to destroy or capture all 
w-ho are in armed resistance. The first effect of this occupation 
will be the immediate release from your former political rulers 
and, it is hoped, a cheerful acceptance of the Government of the 
United States. * * * Wte come not to make war upon the peo- 
ple of a country that for centuries has been oppressed, but to 
bring you protection, not only to yourselves, but to your prop- 
erty; to promote your prosperity and to bestow upon you the 
immunities and blessings of the liberal institutions of our 
Government." In no part of the proclamation, which is quoted in 
full on page 365, was there promise, direct or implied, of State- 
hood or of even such liberal treatment and form of government 
as have been cheerfully accorded by the legislation of the Re- 
publican party in Congress, but antagonized at every step by the 
Democracy. 

The peace treaty (published in full on page 348) in its second 
article states that "Spain cedes to the United States the Island 
of Porto Rico and other islands now under Spanish sovereignty 
in the West Indies;" and Article 9 specifically states that "The 
civil rights and political status of the native inhabitants of the 
territories hereby ceded to the United States shall be determined 
by the Congress." 

Admission to the Union Not Promised in the Treaty. 

Senator Foraker, in an address before the Union League Club, 
Philadelphia, and afterward printed in the Congressional Record 
at his own request, said: "When we acquired Louisiana, New 
Mexico, Florida, etc., it was provided in the treaty in each case 
that its inhabitants should be incorporated into the Union of 
the United States and be admitted to all the rights, advantages 
and immunities of citizens of the United States. The act by 
which we annexed Hawaii declared in express terms that the 
Hawaiian Islands shall become and be a part of the United 
States, but no such provision was incorporated in the Treaty of 
Paris as to Porto Rico and the Philippine Islands; and if there 
had been it is safe to say that the treaty would never have been 
ratified. On the contrary, for the purpose of making it clear 
that no such consequence was intended, it was provided in the 
treaty that 'the civil rights and political status of the native in- 
habitants; of the territory hereby ceded to the Urfffed States 

54 . 



PORTO RICO LEGISLATION. 55 

shall be determined by Congress.' This provision was insisted 

upon by our Commissioners and was necessary to the ratification 

of the treaty, because we then had too little knowledge of the 

people of the Philippines and not enough of those of Porto Rico 

to know whether it would be wise or desirable to incorporate 

them into our body politic and to extend to them the privileges 

'.and immunities of American citizenship and undertake to gov- 

M em them under the Constitution and subject to its restraints 

I and requirements. The Constitution provides that a treaty shall 

Jbe a part of the supreme law of the land. 

Congress Had Full Power. 

"This provision gave to Congress an undoubted right to incor- 
\ porate the inhabitants of these islands into the Union of States, 
'' as was provided for in ihe Louisiana, Florida and Mexican trea- 
' ties, or to leave them outside, as it might deem advisable. In 
a other words, Congress had plenary power over the whole sub- 
ject by the terms of the treaty itself, but Congress had this same 
power under the Constitution, the third section or Article 4 of 
which provides: 'Congress shall have power to dispose of and 
te make all needful rules and regulations respecting* the territory 

> or other property belonging to the United States. 

' "It was under this view of the relationship of Porto Rico to the 

i! United States that the final determination of Congress to estab- 

n lish a slight customs duty between the island and the United 

1 States was reached." 

Why a Slight Tariff Was Necessary. 

e The President in his message recommended that "Our plain 

| duty is to abolish all customs tariffs between the United States 

„ and Porto Rico and give our products free access to our markets." 

j It became apparent soon after this suggestion, however, that coji- 

P ditions in the island, owing to the destruction of property by the 

► hurricane and the absolute inability of the people to pay taxes 
, for conduct of the local government, made it imperative that 
y some temporary provision must be made by the United wStates 
e for the carrying on of the local government, and at the same 
r time it was equally apparent that Congress should not take a 
u step which could be looked upon as establishing a precedent for 
. demanding absolute free trade between the United States and 
I any and all island territory which came to it. 

A Protection to Labor. 

j Absolute freedom of trade between the United States 
and the Philippines with their population of nearly 10,- 
000,000 of Asiatic cheap labor would have proved dam- 
aging to the labor interests of the United States, both 
to the farmers who expected to be able to establish the beet 
sugar industry, to the tobacco growers, to the coal miners who 
are already suffering from the competition of cheap labor from 
other parts of the world, and to other classes of our laboring 
population. For these reasons it was thought best, inasmuch as 
the necessities of the situation required it, in the very first legis- 
lation regarding the islands coming to the United States by this 
treaty, to establish a precedent asserting the right of Congress 
to place such tariff and other restrictions between territory of 

. this character and the United States as it might deem best, thus 
leaving to it the determination of the precise relation which 

3 each of the territories thus gained might occupy, as time and 
circumstances should develop, especially as the treaty had spe- 

\ cifically provided that "the civil rights and political status of the 
native inhabitants of the territories hereby ceded to the United 
States shall be determined by Congress. It was for this spe- 
cific purpose of protecting the labor of the United States, 
on the farm, in the mine, in the factory or elsewhere, that Re- 
publican leaders determined to insist upon a mere shadow of 
tariff duties between Porto Rico and the United States. It was 
only a shadow, the rate determined upon being 15 per cent of 
the regular Dingley law rates, not a 15 per cent tariff, but 15 
per cent of the rates which averaged about 40 per cent ad valo- 



56 PORTO RICO LEGISLATION. 

rem, thus making' the average duty on goods passing between the 
United States and Porto Eico about 15 per cent of 40 per 
cent, or an average of about 6 per cent ad valorem." , 

• A Large Free List. 

The bill as finally passed, which will be found on page 3G0, 
besides giving to the Porto Eicans all the benefits of the free list 
of the Dingley Act, provides that "all articles which had been ad- 
mitted free of duty by specific authorization of the President and 
Secretary of War shnll continue upon the free list upon imports 
into that island from the United States. These articles which are 
thus placed upon the free list by this special act include flour, ba- 
con, pork, rice, mutton, codfish, machinery for making sugar, 
bags for sugar, plows, hoes, machetes and agricultural imple- 
ments generally; hatchets, rough lumber, modern school furni- 
ture, lime and numerous other articles of this character required 
in the daily life of the island. 

Light Duties. 

The actual rate of duty prescribed amounted to 2% cents per 
biishel on corn, V/ 2 mills per pound on oatmeal, 3 mills per pound 
on dried apples, 1% mills per pound on candles, from 3 to G mills 
per yard on cotton cloth according to the grade, 6 mills per yard 
on shirting cloth, nine-tenths of one mill per pound on cut nails, 
1 mill per pound on dried herring, 3 mills per pound on lard, 
and other articles in the same proportion. A detailed statement 
of the rates on articles passing into the island will be found on 
page 366. 

All Duties Collected to be Beturned to Porto Rico. 

Congress having thus clearly defined its claim to the right to 
determine the exact relationship of each of theseislands,also pro- 
vided that "the duties and taxes collected in Porto Rico in pur- 
suance of this act, less the cost of collecting the same, and the 
gTOSs amount of all collections of duties and taxes in the United 
States upon articles of merchandise coming from Porto Eico 
shall not be covered into the general fund ol the treasury, but 
shall be held as a separate fund and shall be placed at the dis- 
posal of the President, to be used for the government and benefit 
of Porto Eico until the government of Porto Eico shall have 
been organized, when all moneys theretofore collected under the 
provisions hereof then unexpended shall be transferred to the 
local treasury of Porto Eico." 

Not content with the marked generosity of giving- to the peo- 
ple of Porto Eico all of the money paid by the citizens of the 
United States on articles coining from that island into this coun- 
try, the President sent to Congress a special message recommend- 
ing that all duties which had been paid on goods coming from 
Porto Eico since the occupation by the United States should be 
refunded to that island — a sum amounting to over $2,000,000, 
and this proposition, although opposed by Democrats at every 
step and embarrassed by every technical objection possible, was 
promptly passed by Eepublican votes within a few hours of the 
receipt of the President's message upon this subject. The vote 
on this bill will be found on page 365. 

Absolute Free Trade With the United States Provided. 

The bill also provided that the tariff which it established 
should be merely temporary, that it should cease "whenever the 
Legislative Assembly of Porto Eico shall have enacted and put 
into operation a system of local taxation to meet the necessities 
of the government of Porto Eico," and that "in no event shall 
any duties be collected after the first day of March, 1902, on 
merchandise and articles coming into Porto Eico from the United 
States or coming into the United States from Porto Eico." By 
this process absolute free trade between the island and the main- 
land was provided at a fixed and comparative! 3^ near date, and 
yet the precedent of the right to determine matters of this 
character was clearly asserted. 



POKTO KIOO LEGISLATION. 57 

The New Government for Porto Rico. 

The bill which established the tariff relationship, also estab- 
lished a form of government for Porto Rico far more generous 
than that which most governments give to territory sustaining 
a relationship of this character, far more generous than that 
which the people of Porto Rico had ever known and far more 
liberal than were any of the earlier territorial governments es- 
tablished for our own people. Senator Foraker, in his Union 
League speech, said upon this subject: "The first territorial gov- 
ernment established after the adoption of the Constitution was 
for Louisiana, and in that case all executive, legislative and judi- 
cial power was lodged in appointees of the President who were 
made absolutely autocratic. The same was true of the territo- 
rial governments of Florida, Mississippi, Alabama, Arkansas, 
Missouri, and others on down until the days of Republicanism. 
The people were not allowed to choose any of their officials 
under the territorial governments. It has only been in later 
years and under Republican rule and legislation by it that they 
have been allowed a participation in the conduct of their gov- 
ernment. In Porto Rico we allow the people to elect the lower 
house of the legislature and give them representation by ap- 
pointment in the upper house and in all other departments of 
their government. The provision that the upper house of their 
legislative assembly shall be appointed by the President is due 
to the fact that among its members are the bureau officers upon 
whom will devolve the responsible duty of organizing all the 
departments of that government and upon whom we must rely 
to make that Government as nearly American as possible. In 
no other way could we safely proceed to secure the necessary 
ability and experience for such work. * * * We shall only be 
too glad to increase the participation of the Porto Ricans in 
the conduct of their government as rapidly as they are found 
equal to its demands. They have in that island about 1,000,000 
people. Of this whole number only about 15 per cent can read 
or write in any language, and only about the same number 
own any property. This means in that little parallelogram about 
100 miles in length and 35 miles in width, fully 800,000 men. 
Women and children who are absolutely illiterate and as depen- 
dent as poverty can make them. None of them have had any 
experience in governing themselves and very few have any con- 
ception of what is meant by free government according to our 
ideas of republican institutions; — a fact which seems ample jus- 
tification for retaining in the hands of the appointing power in 
the United States a small proportion of the control of affairs 
in the island provided for in the act establishing the system 
of government, which act will be found on page , and with 
it the act establishing the temporary tariff between the island 
and the United States. Under the provisions of that act Hon. 
Charles H. Allen, formerly a member of Congress from Massa- 
chusetts, and more recently Assistant Secretary of the Navy, 
a man of distinguished ability and in whom all men in all par- 
ties have implicit confidence, was made Governor of the island 
and is now establishing the government provided for in the act." 

For full copy of Porto Rican Act see page 3G0. 

The Currency of the Island. 

The present administration of the United States, which stands 
emphatically for sound money, has taken up the task of sub- 
stituting United States currency for the depreciated silver money 
existing in the island when it came under our control, and the 
depreciated silver money has been withdrawn and redeemed 
at more than the market value of the silver of which it is com- 
posed without the slightest disturbance of financial conditions 
and money of the United States substituted. 

Physically, the island of Porto Rico is about 100 miles in 
length, 35 miles in width and contains nearly 1,000,000 people. 
The imports of the island have ranged, under normal conditions, 
from $12,000,000 to $15,000,000 annually. About one-fifth of these 
were formerly from the United States except in the reciprocity 
years, when this proposition was considerably increased. It is 
expected under the present arrangement, by which the full 
Dingley tariff rates apply to all articles coming' into the island 
from countries other than the United States and only 15 per 
cent thereof on articles from the United States, that a large pro- 



58 POR'BO,StfcO© LEGISLATION. 

portion of the imports into the island will in future be from 
this country. The sugar exported from the island ranges at 
about 50,000 tons annually, or about 3 per cent of the total 
importation of sugar into the United States, each year. 

Effect of the New Law on Commerce With the Island. 

The effect of the new law on our commerce with the island is 
seen in the fact that the exports to Porto Rico in May and June, 
1900, were $1,587,478, against $666,087 in the same months of 1899; 
the imports from the island in May and June, 1900, were $2,322,- 
124, against $1,461,982 in the same months of 1899, and all this 
in the face of the impoverished condition of the island, due to 
the destruction by the storm of August, 1899. 

Porto Rican Taxes Under Spanish Rule. 

The discussion regarding methods of raising revenues for 
Porto Rico lends especial interest to a statement regarding the 
system of taxation enforced under Spanish rule, made by Dr. 
Henry K. Carroll, Special Commissioner, who was sent to Puerto 
Rico in 1899. The statement forms a part of his report which 
was presented to the President on October 6, 1899. It is as 
follows: 

"Customs duties were levied both on imports and exports. There was 
also a special tax on the loading and unloading of freight, the embark- 
ation and disembarkation of passengers, and transitory dues of 10 per 
cent on duties on imports. The revenues from these sources, as has 
already appeared, constituted by far the largest item of the receipts of 
the insular treasury. 

There was a system of direct taxation, resting on the basis of in- 
come, and not on valuation. The territorial tax, yielding $-110,000 to the 
insular treasury, affected urban and subtirban property; the industrial 
and commercial, yielding $240,000 to the insular treasury, included all 
kinds .of manufactures and industries, all branches of the mercantile 
and banking business, and all occupations. 

The industrial and commercial tax was divided according to the popu- 
lation of cities and towns, classified according to character of business, 
and graded according to amount of business. There were six divisions 
on the basis of population. San Juan, Ponce and Mayaguez constituted 
the first division; towns with customs houses of the first-class the second; 
towns with more than 12,000 inhabitants the third; the other three divis- 
ions being graded down from 12,000 to 4,000 and less. Then there were 
five classes of tariff. The first, with eight grades, included merchants, 
wholesale and retail; the second, importers and exporters, money lenders, 
transportation, salaries of officials of banks, railroads and other com- 
panies; the third, the manufacture of sugar, rum, machinery, chemicals, 
chocolate, ice, etc.; the fourth, the professions and occupations, and the 
fifth, patents or new shops, factories, etc., which had to pay a special 
installation tax. Merchants in the first class of the first tariff would pay 
130 pesos in San Juan, Ponce, or Mayaguez; 104 in Aguadilla, Humacao, 
etc.; 72 in Adjuntas, Bayamon, etc.; 52 in Coamo, Cainuy, etc.; 39 in 
Aibonito, Barranquitas," etc., and 31 in Dorado, Santa Isabella, etc. Mer- 
chants, wholesale or wholesale and retail dealers in various lines of wares, 
on commission or on their own account, paid according to the first grade; 
retail shops, hotels and restaurants, according to the second; pharmacies, 
shoe, provision, and other retail stores were in the third; stationery shops 
in the fourth, wholesale and retail tobacco shops in the fifth; cafes for 
the sale of soda waters, etc., in the sixth; boarding houses in the seventh, 
and shops for the sale of native flowers in the eighth. 

The second tariff embraced salaries, wages, commissions, and the like. 
Governors or directors of banks, railroad companies, etc., paid 5 per 
cent of their wages or salaries, contractors 6 per cent of the amount 
of their contracts, banks 10 per cent of their profits, importers and ex- 
porters, receiving and remitting, buying and selling, shipping and con- 
ducting banking operations, paid $700 in cities of the first division. Pro- 
vincial and municipal officers were not required to pay tax on their 
salaries. But no kind of business seems to have escaped the sharp eye 
of the State experts. Public baths, balls and concerts, periodicals, in- 
cluding daily papers, laundries, funeral agencies, gymnasiums, livery 
stables, all kinds of industries, even the manufacture of artificial feet, 
were taxed. Blacksmiths paid; according 1o the town in which their 
business was conducted, from 12 to 3 pesos; architects from •»('> to 0; 
dentists and pharmacists, the same; physicians and surgeons, 48 to 12: 
nurses and midwives, 18 to 5; veterinarians, 15 to 5; harbers, 8 to 2; 
lawyers, registers of property, and notaries, 48 to 16; while carpenters, 
cabinetmakers, bookbinders, florists, tailors, milliners and dressmakers, 
professors of music, languages, painters, etc., paid according to their 
class of trade. Among the exceptions may be noted washerwomen, 
barbers without shops, clerks in commercial houses, and similar classes. 
Day laborers were assessed on the basis of one-third the value of half a 
year's wages. 

According to the law, some classes of business and occupations are 
agremiable and some are not. A particular class is called a gremio. 
The lawyers, for example, would form one (class), the doctors another, 
the merchants another, and so on. The custom was for the State to an- 
nounce the amount it needed, and those composing the various gremios 
les) would meet, each gremio (class) by itself, and apportion the 
amount among Its members on the basis of the tariff. 

.{For rates of new tariff see page 865.) 



THE WAR IN THE PHILIPPINES. 

A Detailed History of Principal Events — The President's In- 
structions with Reference to the Inhabitants — Aguinaldo's 
Treachery as shown by Official Documents — Democratic En- 
couragement for the Insurgents. 

The ratification of the peace treaty ended the war with Spain 
and would have ended that in the Philippines but for the am- 
bitions of Aguinaldo to rule those Islands and of the Democratic 
party to rule the United States. The same spirit of fault-finding 
and a determination to subordinate everything* to politics and 
possible partisan advantage which characterized the course of 
the Democratic party throughout the entire course of the Span- 
ish-American War has also characterized its course with refer- 
ence to the war in the Philippines. 

The developments with reference to the Philippines began 
when, immediately following the declaration of war with Spain 
President McKinley, knowing that the Spanish fleet in the Pa- 
cific waters would prey upon our commerce and probably attack 
American cities on the Pacific coast, telegraphed Admiral Dewey, 
who was in charge of the Asiatic squadron then lying off Hong- 
kong, directing him to capture or destroy the Spanish fleet in 
the Pacific. On the morning of May 1st, before dawn of day, 
he entered the harbor of Manila and entirely destroyed the 
Spanish fleet with a loss to the enemy of 412 men killed and 
wounded, while on the American side there were none killed 
and but 7 wounded. 

An Immediate Announcement that "We come not to make 

War upon the People of the Philippines, but to 

Protect them." 

On receipt of the news at Washington the President at 
once telegraphed the Commander of the fleet asking what 
troops would be required and in reply was informed thai, 
although the City of Manila might be taken by bombard- 
ment, the city and adjacent country could not be held without 
land forces. The President, therefore, by executive order to the 
Secretary of War, announced on May 19th that "as the control 
of the naval station had rendered it necessary in prosecution ol' 
the war with Spain to send an army of occupation to the Philip- 
pines for the two-fold purpose of completing the reduction ol' 
the Spanish power in that quarter and of giving order and 
security to the islands while in possession of the United States 
he had designated General Merritt to proceed with an army of 
occupation for that purpose." "It will be the duty," the order 
continued, "of the Commander of the expedition, immediately 
upon arriving' in the islands, to publish a proclumat'um declaring that tie 
ciimc not to make icar upon (lie people of the Philippine* nor upon an;/ jntrtg 
or faction among them, bat to protect tlicm in their h&tbes, in their employ- 
ment* and intiieir personal and religious rights. All persons, who either by 
active aid or honest submission co-operate with the United 
States in its efforts to give effect to this beneficent purpose will 
receive the reward of its support and protection. Our occupa- 
tion should be as free from severity as possible." 

In pursuance of this order the first expedition sailed May 25th 
and arrived off Manila June 30, and other expeditions soon fol- 
lowed, the total forces consisting of 641 officers and 15,058 en- 
listed men. The protocol with Spain was signed on August 
12th, providing in addition to the relinquishment to the claim 
of sovereignty of Cuba and the cession of Porto Rico to the 
United States, that "the United States will occupy and hold the 
city, bay and harbor of Manila pending the conclusion of a treaty 
of peace which shall determine the control, disposition and gov- 
ernment of the Philippines." On August 13th, however, prior 
to the receipt of the announcement of the protocol, Admiral 
Dewey demanded the surrender of Manila and being refused 
bombardment was begun, accompanied by action on the part 
of the land forces, and Manila, the capital of the Philippines, 
surrendered unconditionally. 

50 J* i 



GO THE PHILIPPINES. 

On August 17th a telegram was sent by Adjutant-General 
Gorbin to General Merritt, saying: " The President directs that there 
must be no joint occupation vjith (lie insurgents. The United States in 
possession of Manila City, Manila bay and harbor, must preserve 
the peace, and protect persons and property within the territory 
by their military and naval forces. The insurgents and all others must 
recognize the military occupation and authority of the United States, and the ces- 
sation of hostilities proclaimed by the President. ' ' On the 12th of the f ollow- 
ing December the treaty' was signed by the Commissioners at 
Paris and on December 21st, in an order to the Secretary of 
War, after referring- to the conclusion of the treaty and the 
cession of future control of the Philippines to the United States, 
the President said: "The Military Commander is enjoined to 
make known to the inhabitants of the Philippine Islands that 
in succeeding- to the sovereignty of Spain * * * * the au- 
thority of the United States is to be exerted for the security 
of persons and property of the people of the islands and for 
the confirmation of all their private rights and relations. It 
will be the duty of the Commander of the force* of occupation to announce 
that we come not a* invaders or conquerors, but as friends to protect the na- 
tive in their homes, in their employments and, in their personal and religious 
riglds. All persons who either by active aid or by honest submis- 
sion co-operate with the Government of the United States to give 
effect to this beneficent purpose will receive the reward of its support 
and protection. All others will be brought within the lawful rule 
we have assumed with firmness, if need be, but without severity 
so far as may be possible." 

Official Announcement that there must be no Political Alli- 
ance with the Insurgents. 

At this juncture Aguinaldo first appears as opposing- American 
occupation. He had been the leader of a rebellion against the 
Spanish Government in the Philippines prior to the announce- 
ment of hostilities between the United States and Spain, and 
had for a, consideration paid to him by the Spanish authorities consented 
to leave the islands, going first to Singapore, where he and his 
followers professed friendship for the Americans and a de- 
sire to co-operate with them as against the Spanish Govern- 
ment. From Singapore he went to Hongkong, expecting to join 
Admiral Dewey and proposing to co-operate with him as against 
the Spanish Government, but only arrived there on May 2d, 
the day after the fall of Manila. On May 10th, upon represen- 
tation of the American consul at Hongkong, Aguinaldo was per- 
mitted to accompany the United States ship McCulloch from 
Hongkong to Manila, where he remained professing to co- 
operate with the Americans from that time forward. Re- 
garding this transfer of Ag-uinaldo to Manila, a statement 
by Admiral Dewey furnished to the Philippine Commission 
says: "Upon the arrival of the squadron at Manila it was fountf 
that there was no insurrection to speak of, and it was accord- 
ingly decided to allow Aguinaldo to come to Cavite on board 
the McCulloch. He arrived with 13 of his staff on May 19th, 
and immediately came on board the Olympia to call on the 
commander-in-chief, after which he was allowed to land at 
Cavite and organize an army. This was done with the purpose 
of strengthening the United States forces and weakening those 
of the enemy. No alliance of any kind was entered into with Aguinaldo 
nor was any promise made to him then or at any other time." Regard- 
ing this arrival of Aguinaldo, Admiral Dewey on May 20th sent 
this message to the United States: "Aguinaldo, the rebel com- 
mander-in-chief was brought down by the McCulloch. Organ- 
izing forces near Cavite, and may render assistance which may be 
valuable." On May 26th the Secretary of the Navy telegraphed 
Admiral Dewey: "It is desired, as far as possible, and consistent 
for your success and safety, not to liave political alliances with, the in- 
surgents or any faction in the islands that would incur liability to maintain 
thei'r cause in the future" On June 6th, Admiral Dewey cabled in 
reply : "I have entered into no alliance tvith the insurgents or with any faction. 
This squadron can reduce the defenses of Manila at any moment, 
but it is considered useless until the arrival of sufficient United 
S rates forces to retain possession." 

Thus it is apparent that within a week of the arrival of Aguinaldo ot 
Manila the Administration at Washington cabled Admiral Deueylhat (here 



THE PHILIPPINES. 61 

must be no political alliance of any s&rt wWi the dative mswr^fents, andAdmiral 
Dewey replied that liehad entered into no alliance with the vtomrgerds or with 

any faction, and that lie could reduce the defenses of Manila at any 
time without their aid. 

Aguinaldo's Preparations for Hostilities. 

But a few days after his arrival at Manila, Aguinaldo, finding 
j that he was not recognized by the American commander, on 
May 24th issued three proclamations: one announcing a dicta- 
torial government by himself with himself as dictator; a second 
containing decrees with reference to the carrying on of military 
operations, and a third containing decrees as to the treatment 
of the enemy, and upon these the natives began to flock to his 
standard, presumably opposed to the Spaniards, against whom 
he had formerly b^e'n fighting. Admiral Dewey refrained from as- 
sisting him with the force under his command and declined his 
request,telling him the squadron could not act until the arriva'l of 
the United States troops. "He treated him as a friensd," says Sen- 
ator Lodge (whose remarks upon this subject, to be found in 
the "Congressional Record" of March 7, 1900, and in the docu- 
ment entitled "Pages from the Congressional Record," should be 
carefully studied), "but kept aloof from his confidence and con- 
sistently held to the position that the United States was not bouDd 
to assist the insurgents or the insurgents to assist the United 
States." The first detachment of the army arrived on July 3d 
and the second on July 20th, and the army officers maintained 
toward Aguinaldo the same attitude as that of Admiral Dewey, 
refusing to co-operate with the insurgents or to recognize them 
in any way, treating them merely as a friendly force opposed 
to the common enemy. Aguinaldo, meantime rapidly enlarging 
his pretensions, in July declared martial law to exist over at I 
the islands; that is, he asserted his own authority, which was 
purely dictatorial, over islands inhabited by different tribes 
where he had not the slightest foothold. 

General Merritt arrived in the Philippines on July 25th and 
a dispatch from Admiral Dewey to the Government at Wash- 
ington said: "Merritt arrived yesterday. Situation is most crit- 
ical at Manila. The Spanish may surrender at any moment. 
Merritt's most difficult problem will be how to deal with the 
insurgents under Aguinaldo who have become aggressive and 
even threatening" toward our army." 

Hostilities begun by Aguinaldo's Forces. 

On August 13th Manila was captured and of this and sub- 
sequent events the Philippine Commission, composed of Ad- 
miral Dewey, General Otis, President Schurman, Professor 
Worcester, and General Denby, says: "When the city 
of Manila was taken on August 13th, the FilijAnos took no part 'in 
the <ttt<i<-L\ hut ciiuw following in vilh <i view of looting the eit>i and were 
only prevented from doing- so by our forces preventing them 
from entering. Aguinaldo claimed that he had the right to 
occupy the city; lie demanded of General Merritt the palace 
of Malacanan for himself and the cession of all the churches 
of Manila, also that a part of the money taken from the 
Spaniards as spoils of war should he given up, and above 
all that he should be given the arms of the Spanish prisoners. 
This confirms the statement already made that he intended to 
get possession of these arms for the purpose of attacking us. 
All these demands were refused. After the taking of Manila 
the feeling between the Americans and the insurgents grew 
worse day by day. * * * * Aguinaldo removed his seat of 
government to Malolos, where the so-called Filipino congress 
assembled. * * * * On the 21st of September a significant 
decree passed the Filipino congress imposing a military service 
on every male over IS years of age, except those holding- gov- 
ernment positions. In every carriage factory and blacksmith 
shop in Manila bolos (knives) were being- made. * * * Danger 
signals now multiplied. Aguinaldo endeavored to get "the war- 
making power transferred from congress to himself, and also 
urged a heavy bond issue to secure one million dollars for the 
purchase of arms and ammunition. * * * It is now known that 
elaborate plans had been perfected for a. simultaneous attack 



62 THE PHILIPPINES. 

by the force within and without Manila. * * * Pbrskteni 
f&acks were made to provoke our soldiers to fire. The insurgents 
were insolent to our guards and made persistent and con- 
tinuous efforts to push them back and advance the insurgent 
lines further into the city of Manila. * * * With great tact 
and patience the commanding- general had held his forces in 
check and now made a final effort to preserve the peace by ap- 
pointing- a commission to meet a similar body appointed by 
Aguinaldo to 'confer with regard to the situation of affairs 
and to arrive at a mutual understanding- of the intent, pur- 
poses, aims and desires of the Filipino people and of the people 
of the United States.' Six sessions were held but no substan- 
tial results were obtained, the Filipino commissioners being 
either unable or unwilling to give any definite statements of the 
intents and aims of their people. * * * The critical moment had 
now arrived. Aguinaldo secretly ordered the Filipinos who were friend/// to 
him to seek refuge outside the city. * * * * On tlie evening of tlie 4th 
of February the insurgent officer came to the front with a detail of men and 
attempted to pass the guard on the San, Juan bridge. The sentinel drove 
them back without firing. That same evening, a large body of insurgent 
troops made an advance on the South Dakota outposts, which fell back rather 
than fire. About the same time the insurgents came in force to the east end 
of the San Juan bridge. For several nights prior thereto a, lieutenant in the 
insurgent army had been going regularly to our outpost No. 2, of the Ne- 
braska Regiment, and attempting to force the outpost back and insisting 
on posting his guard within the Nebraska lines, and at this time he again ap- 
peared u-Uh a detail of about six men and approached private Grayson, tlie 
sentinel on duty; he, after halting them three times without effect, fired, killing 
the lieutenant, whose men returned the fire and then retreated. Immediately 
rockets were sent up by the Filipinos and they commenced fighting all along 
the line." 

It thus appears that the beginning of actual hostilities was 
brought about through a persistent defiance of military rules by Agui- 
naldo' s officers and ivith the evident purpose of provoking (lie conflict for v:hi eh 
his entire line of troops seems to'have been ready. Commenting upon this the 
Commission says : " It is known of all men that immediately after the 
first shooting the insurgents opened fire all along their line and con- 
tinued to fire until about midnight, and about 4 o'clock on the 
(following) morning of February 5th the insurgents again 
opened fire all round the city and kept it up until the Ameri- 
cans charged them and drove them with great slaughter out of 
their trenches." 



An Official Order for the Extermination of Americans and all 
others except Filipino Families— Prisoners to be Liberated 
to aid in the General Slaughter of Men, Women and Chil- 
dren. 

The course of Aguinaldo in deliberately precipitating hos- 
tilities with the United States forces was mild in its char- 
acter compared with that which followed. On February 15th 
a proclamation was issued by Aguinaldo's Secretary of the 
Interior calling on the Filipinos in Manila and elsewhere to 
join on February 22 (Washington's birthday), in the massacre 
of every foreigner. It says: "You will so dispose that at 8 
o'clock at night the individuals of the territorial militia 
at your orders will be found united in all the streets of San 
Pedro, armed with their bolos, revolvers and guns, and ammu- 
nition if convenient. Filipino families only will be respected. They 
should not be molested, but all other individuals of whatever race they may be 
will be exterminated without any compassion AFTER THE EXTERMI- 
NA TION OF THE ARMY OF OCCUPA TION. The defenders of th e 
Philippines in vour command will attack the guard at Bilibid and 
liberate prisoners and presidiarios, and having accomplished this 
they will be armed, saying to them: ^Brothers, we must avenge 
ourselves on the Americans and exterminate them that we may 
take our revenge for the infamies and treacheries which they 
have committed upon us; have no compassion upon them; attack 
with vigor; all Filipinos en masse will second you; long live Fili- 
pino independence.' The order which will be followed in the at- 
tack will be as follows: The sharpshooters of Tando, Santa Ana, 
will begin the attack from without and these shots will be the 
Signal for the militia of Trozo, Binodo, Quiapo and Sampaioc to 



THE rUll-li'l'lMfiS, 03 

go out into the streets and do their duty. Those of Paco, Er- 
mita, Malate, Santa Cruz and San Miguel will not start out 
until 12 o'clock unless they see their companions need assistance. 
The militia will start out at 3 o'clock in the morning. If all 
do their duty our revenge will be complete." 

Contrast the above with President McKinley's instruction to 
the Secretary of War and through him to the officers of our 
army and navy in the Philippines: "The authority of the' United 
States is to be exerted for the security of persons and property 
of the people of the islands and for the confirmation of all 
their private rights and relations. It will be the duty of the 
commander of the forces to announce and proclaim in the most 
public manner that we come not as invaders or as conquerors but 
n* ffiends to protect the natives in their homes, in their em- 
ployments and in their personal and religious rights. It 
should be the earnest and paramount aim of the military ad- 
ministration to win the confidence, respect and affection of the 
inhabitants of the Philippines by assuring to them in every 
possible way that full measure of individual rights which is 
the heritage of free peoples and by proving to them that the 
mission of the United States is one of benevolent assimilation, 
substituting the mild sway of justice and right for arbitrary 
rule."' 

Further Proof of Aguinaldo's Treachery. 

Documents captured will show that months earlier, even while 
Aguinaldo was expressing friendship for and co-operation with 
Americans, he was plotting not only against them, but was even 
co-operating with his former enemies, the Spanish, to drive the 
Americans from the islands and plant "the flags of Spain 
and the Philippines side by side." A letter dated "Office of 
the President and Revolutionary Government of the Philippines, 
Malolos, October 25, 1898," and addressed to General Rios, the 
Spanish General, at that time in command at Iloilo, was captured 
by United States officials and forwarded to the President at 
Washington and by him forwarded to Congress. The letter is 
signed in cipher but its date, ''Office of the President," its entire 
tone and the fact that the closing letter of the cipher signature 
is that used for Aguinaldo's first name — Emilio — renders its 
authorship beyond question, so much so that Senator Spooner, 
in presenting it to the Senate said that "Here is what Aguinaldo 
wrote to General Rios." The letter says: "I write you, General, 
especially with the hope of yet saving from the shipwreck the 
sovereignty of Spain in these islands. * * * * I am informed 
that you are considering surrendering the place to us or to the 
Americans. The way to make this surrender is to join us and 
proclaim a confederation of the Filipino Republic and the Span- 
ish Republic. * * * * There will be hurrahs for Spain and 
the Philippines united as a Federal Republic. Your troops will 
pass into the common army, you will be promoted to be Lieu- 
tenant General, the Spanish flag in the Visayas will be sup- 
ported by us, the government will pass to our provincial coun- 
cils, those who want to go back to Spain will be sent back at 
our expense and the flags of Spain and the Philippines will 
float side by side. You will give an account of this to Madrid, 
and especially to Pi Marfal, and in the meantime we shall fight 
the Americans together." 

Still another evidence of the proposed slaughter of all except 
Filipinos in Manila is found in a letter written by Aguinaldo 
himself on January 7, 1890, to Senor Legarda, his personal friend, 
which had fallen into the hands of Americans, in which he says: 
il Ibeg ijixi. to h:are Manila with yonr family and come here to MahJas. tiut 
not because I wish to frighten y<>n,—bvt I merely wish to varn yon for your 
satisfaction, <ilthough it is not 1]\e day nor the ireeJc." This letter, it will be 
observed, was written more thau a month preceding the date finally 
set for the slaughter, February 22, 1S99, showing that it had been 
contemplated for weeks — perhaps for months. 

A still later statement regarding this proposed uprising and 
slaughter has recently fallen into the hands of Government 
officials in the Philippine •-. of which General Mae Arthur said in 
a telegram dated May 7, 19Q0: "'Aguinaldo's order for uprising in 
Manila contains over 1,000 words, mostly detailed instructions for 



64 THE 1'HIUPIMNKS. 

street fighting; involves certain acts of treachery — use of boiling abater 
from upper windows by women and children; assassination of American 
officers implied." 

Complete Evidence of Deliberate Treachery. 

This is a connected and conrplete chain of evidence. First, 
that Aguinaldo, establishing a rebellion during the existence of 
the Spanish Government in the islands, was bought off by that 
government and sent to Singapore; that arriving at Hongkong 
after the departure of the American fleet and the capture of 
Manila, he was permitted to return in the belief that he was 
friendly to the Americans and would co-operate with them; that 
he professed to co-operate with them during a time, but during 
that same period was plotting with the Spanish for American 
defeat; that later, after the absolute defeat of the Spanish he 
and his so-called government planned the slaughter of not only 
all Americans but all except Filipinos, and that finally the be- 
ginning of hostilities between the American troops and those 
under his control was deliberately and purposely brought about 
by him and his officials. (Copies of many of the documenis here 
referred to are givey, on pages 340 to 345.) 



EVIDENCE THAT THE INSURRECTION WAS ENCOUR- 
AGED AND KEPT ALIVE BY THE UTTERANCES OF 
MR. BRYAN AND HIS POLITICAL ASSOCIATES. 

"Anti-Imperialism" the Common Battle-Cry in Filipino and 
Democratic Camps. 

Now for the evidence that Aguinaldo's war against the Ameri- 
can troops has been encouraged and kept alive by the public 
utterances and general policy of the Democratic party and Demo- 
cratic leaders in the United States, especially by the acts and 
utterances of the Democratic candidate for the Presidency, Wil- 
liam J. Bryan. An extract from La Independencia, a newspaper 
supported by Aguinaldo, published in the Philippines, pre- 
sented in the United States Senate by Senator Spooner, says: 
"Mr. Bryan, the competitor of McKinley in the last presidential 
election and the candidate selected for the future by the Demo- 
cratic party, has published a manifesto which caused a profound 
sensation in the United States. Mr. Bryan announces himself 
decidedly opposed to the imperial policy of the Government and 
shows the danger in which American institutions will be placed 
by this entirely new ambition for colonization. * * * To place 
the American yoke on the millions of natives who wish to be free 
200,000 men will be needed. A great popular meeting was held 
in New York on February 23d to protest against the imperial- 
istic policy of the United States. Mr. Bryan declared at a great 
meeting at Denver that the United States could not institute a 
colonial policy." 

Aguinaldo Announces in Advance the Democratic Platform 

of 1900. 

The same paper in October, 1899, published a signed manifesto 
from Aguinaldo, in which he said: " We ask God that he may gnu it 
a triumph of the Democratic party daring the pendency of the elections of that 
year in the hone&t wish which is the hope that defends the Philippines, and that 
imperialism may cease from its mad idea of subduing us with its arms." 

A captured document, also presented by Senator Spooner, says: 
"In the United States meetings and banquets have been held in 
honor of our honorable President, Don Emilio Aguinaldo, who 
was proclaimed by Mr. Bryan, the future President of the United 
States, as one of the heroes of the world. The Masonic society, 
interpreting the unanimous desire of the people, together with 
the Government, organized a meeting and popular assembly 
in this capital in favor of a national independence which will 
take place Sunday, the 29th, in honor of Mr. Bryan end die Anti- 
Imperialist Party which defends our cause in the United States. * * * 
At midnight a banquet will take place in the Palace in honor of Mr. Bryan, 
irho will be represented by American p'rwmsPs:^ 



THE PHILIPPINES. 65 

This proclamation is signed by the Secretary of the Interior. 
the officer, it will be remembered, who issued the order for 
the slaughter of Americans and all others in Manila *\ 
Filipinos. Still another captured communication dated October 
26, 1899, addressed to the Filipino Secretary of Foreign 
Affairs, says: "Wishing to hold a meeting in the morn- 
ing of Sunday next in the presidential palace of this Eepublic, 
to correspond with the one held in the United States by Mr. 
Bryan. u;lio toasted our honorable President as one of the heroes of 
the world, and with the object of carrying this out with the 
utmost pomp and contributing by the presence of your subor- 
dinates to its greater splendor, he would be obliged if you could 
come and see him for a conference upon this matter. May God 
keep you many years. (Signed) Filipe Buencamino, the Sec- 
retary." 

Another communication from Dagupan, addressed to the Filipino 
Secretary of War. says: "Received your circular by telegraph yes- 
terday. Was received with great animation and patriotic en- 
thusiasm by the people gathered in the great reunion in Gov- 
ernment house. We had early this morning a gathering of civil and mil- 
iary officers and private persons to celebrate the independence of the country and 
in honor of Mr. Bryan, and at 4 p. m. we shall have the second part of 
the meeting. We all join in congratulating our honorable Presi- 
dent, the Government and the army." 

General Lawton on the Cry of "Imperialism." 

Detailed comment upon the above statements seems unneces- 
sary except to add the words of that hero who fell on the fight- 
ing line in the Philippines, General Lawton. who said: "I would 
to God that the whole truth of this whole Philippine situation 
could be known by every one in America as I know it. If the so- 
called anti-imperialists would honestly ascertain the truth on the 
ground and not in distant America, they, whom I believe to 
be honest men misinformed, would be convinced of the error 
of their statements and conclusions and of the unfortunate 
effect of their publications here. If I am shot hya Fit ipino bullet it mig]i/ 

" come from one of my own nun becaust I know from capturedprii 
(hat continuance of fighting is chiefly due to reports thai are sent out from 
America.'' That the Democratic leaders in America are the chief in- 
fluence in keeping alive the insurrection in the Philippines at the 
present time is shown by a statement by Colonel F. F. Hilder. an 
officer of the Bureau of Ethnology, who on his return from the 
Philippines in June. 1899. said : " What is left of the rebellion is kept alivt 
by the hope that the policy of the Administration will be rejededbytht people at 
the polls. Anti-administration speeches are being circulated among 
the natives and they are deluded by the belief that if President 
McKinley fails of re-election all thev ask for will be granted." 



COMPLAINTS OF THE FAULT FINDERS ANSWERED. 

The chief complaints made against the course of the Admin- 
istration in the Philippines are: First, that the President by 
a proclamation issued December 21, 1898, after the signing of 
the treaty, but before its ratification, and promulgated by Gen- 
eral Otis on January 5, 1899, declared the sovereignty of the 
United States to extend over the Philippines and that this ac- 
tion should have been delayed until the ratification of the treaty 
by the Governments of the United States and Spain; second, 
that Admiral Dewey, representing the United States, had saluted 
the Filipino flag and co-operated with its army in the capture 
of a Spanish garrison at Subig Bay, by both these acts recog- 
nizing the Filipino army as representing an independent, and 
national organization; third, that General Otis received a com- 
municatioii from Aguinaldo after the attack upon the American 
<>\' February I, 1899, Baying thai it had been begun with- 
out authority and asking a cessation of hostilities, and that 
this request was refused by Otis. 

In reply to these three assertions it is proper to say that the 
action of the President in extending the control of the United 



G6 THE PHILIPPINES. 

States over the islands was not only logical as the result of the 
agreement between the plenipotentiaries of Spain and the 
United States, by which agreement Spain transferred its 
control to the United States, but absolutely necessary for 
the maintenance of order in the islands. With the sign- 
ing of the treaty by the authorized plenipotentiaries of the 
Spanish Government its control in the islands ceased, 
and without such action by the United States Government 
the entire area would have been without an organized government 
to maintain order, and would have been subject to seizure 
by any power as unoccupied territory. The President's 
proclamation, promulgated by General Otis, and published in 
full on page , declared clearly that the control of the islands 
having been ceded to the United States by the plenipotentiaries 
of Spain, their immediate occupation and administration by the 
United States became necessary, and that in so assuming 
control the people should be notified that "the authority of the 
United States is to be exerted for the security of the persons 
and property of the people of the islands and for the confirma- 
tion of all their private rights and relations. It will be the duty 
of the commander of the forces of occupation to announce and 
proclaim in the most public manner that we come not as in- 
vaders or conquerors but as friends to protect the natives in 
their homes, their employment? and in their personal and re- 
ligious rights." 

It was in the face of this announcement by President Mc- 
Kiuley, that "we come not as invaders or conquerors, but as 
friends, to protect the natives in their homes, their employments 
and their personal arid religions rights." that plans for the mas- 
sacre of the American troops and of all others except Filipinos 
were being consummated by Aguinaldo in person, as is shown 
by the order of his Secretary of the Interior already quoted and 
by Aguinaldo's letter to his personal friend, Senor Legarda.in the. 
city of Manila, published elsewhere, in which he says: "I beg 
you to leave Manila with your family and come here to Malolns. 
but not because I wish to frighten you; I merely wish to warn 
you for your satisfaction, although it is not yet the day or 
the week." 

This letter, written on the official letterhead of the Filipino 
government, bears date of January 7. 1899, two days after Presi- 
dent McKinley's proclamation announcing that the Americans 
came not as invaders or conquerors but as friends. It clearly 
and beyond question refers to the prospective slaughter ordered 
tor February 22d by Aguinaldo's Secretary of the Interior under 
date of February 15th. in which he savs: "Filipino families only 
Will be respected. They should not be molested, but all other 
individuals of whatever race the}'- may be will be exterminated 
without any compassion after the extermination of the army -of 
occupation. * * * We must avenge ourselves on the Ameri- 
cans and exterminate them." 

The assertion that Aguinaldo requested a suspension of hos- 
tilities after his attack of February 4th is specifically denied 
by General Otis, who says that a private citizen of Manila, 
Judge Torres, came to him on the evening of February 5th. 2 + 
hours after the fighting began, and asked if something could 
not be done to stop the fighting, and that General Otis replied 
that as Agninaldo began the hostilities the request must come 
from him. Thereupon Judge Torres sent a messenger to Agni- 
naldo saying that General Otis would permit a cessation of hos- 
tilities upon his (Agmnaldo's) request, but Aguinaldo declined 
to make any such request, merely replying that he had no ob- 
jection to a suspension of hostilities and directing the messenger 
to return with that reply, and nothing more. General Otis's dis- 
patch on this subject is printed on page 

Regarding the claim that Admiral Dewey saluted (he Filipino 
flag and co-operated with the Filipino army in the capture of 
■ \ Spanish fort in Pnbig Pay. his complete denial is published. 
Tn it he states that the Filipino flag was never sainted 
by the naval vessels under his command, and that the 
fort in Snbig Pay was captured by his gunboats exclusively, 
on July 10, 1S9^: and as' he had no facilities for the care of 
the Spanish prisoners who refused to give parole, our army 



THE PHILIPPINES. 67 

not yet having- arrived, they were turned over for safe keeping 
to the Filipinos, who at that time were supposed to be cordially 
operating with the United States forces. 



SOME MALICIOUS FALSEHOODS REGARDING INSANITY, 
SUICIDE AND SALE OF LIQUOR IN THE PHILIPPINES 
ANSWERED. 

Among the many false and malicious charges with which the 
opponents of the .Republican party have sought to embarrass the 
Administration and make political capital are: First, that there 
has been an enormous number of cases of insanity in the army 
due to its service in tropical climate; second, that there has also 
been a large number of suicides due to similar causes and to 
dissatisfaction with the policy of the Government and the man- 
agement of the armies; third, that the Government has per- 
mitted an unrestricted and excessive growth of saloons and 
places for the sale cf liquors in the Philippines; fourth, a charge 
that the loss of life in the army operations was excessive and 
uncalled for. These assertions are so absolutely groundless and 
so evidently malicious in statements and partisan in their in- 
tentions that it is worth while reciting actual facts in disproval. 

Insanity in the Army. 

An official table prepared by the War Department, published 
on page 300, shows the number of eases of insanity and suicide 
per thousand men in the army in 1809 and 1898, and in each pre- 
ceding year running back to 1890. It will be seen on an examina- 
tion of this table that the number of cases of insanity to each 
1,000 persons in the regular army service was, in 1891), 1.16; in 
1898, 1.20; while in 1890, a time of profound peace and abundant 
prosperity, the ratio was 1.23 per thousand; in 1891, 1.39, and in 
1892, 1.79. Thus the peicentuge of ins mity in 'h> regal ir artuy during all 
of the war in Cuba, Port Rico <tn<l the Philippines, has been lessthan in years 
of al 'solute peace and general prosperity of the country in which the 
troops were then stationed. 

Suicides in the Army. 

The figures with reference to suicides arc equally convincing of 
(he falsity of the charges of an excessive proportion in this line. 
In 1899 the number of suicides for each 1,000 troops was 34-100 of 
a unit, at the rate of one man lor each 3,000 troops; in 1898, 
47-100ths, while in 1890 the ratio was GO-lOOths; in 1891, 83-lOOthsl 
and in 1892, 82-100ths, tfie rath for 1899 thus being actually less than in 
any other year in thedeeadcand the averagx fot 1898 ami 1899 hss-them &*irmg 
the preceding eight years of absolute peace. This disposes absolutely, on 
the highest official authority, of all charges that the service in the 
tropics results in a higher proportion of insanity or suicide than WAS 
the case in times of absolute peace, when army service w as confined 
to daily routine of maintaining military posts, where men were sup- 
plied with the comforts and conveniences of ordinary daily life. 
The percentages are given for the regular troops only because there 
are no volunteers with which to compare in earlier years, but 
the War Department officials state that the percentage is no 
higher among the volunteers than among the regulars. 

Loss of Life in the War with Spain and in the Philippines. 

Regarding the actual loss of life in the war with Spain or in 
the Philippines, while there is no disposition to minimize the 
loss and sorrow resulting from the death of a single individual 
offering his life in defense of his country, the records of losses 
in these wars compared with those of other wars indicate such 
small proportions as to clearly show that the criticism and as- 
sertions of excessive loss were absolutely unfounded and based 
either upon ignorance or malicious intention. An official table 
prepared by the War Department, published on page 300, shovj s 
that the number killed in battle or dying from wounds received 
in battle during the war was: in Cuba, 1,63G; in Porto Rico, 
4; in the Philippines during the war with Spain, 18; and in 



6$ THE PHILIPPINES. 

the Philippines from the date of the insurrection, February 4 
1899, to May 20, 1900, 022— a total of 2,2S0 during- the two years 
of actual war; while during the 6% months of fighting- in South 
Africa, between October 11, .1899, and April 28, 1900, the British 
losses in battle and from wounds received in battle were 2,825, 
and losses from disease over 2,000; the missing and prisoners 
over 4,000, the number invalided home over 7,000, and the sick 
and wounded in hospitals about 10,000; showing a loss of effec- 
tive fighting strength in the British armv during the time under 
consideration— October 11, 1899, to April 28, 1900— of 26,000 men. 
In the Franco-Prussian war, in which the Germans took 798 000 
men into France, but which occupied but a few months' time, 
tne deaths m battle or from wounds were 28,277, while those 
in our own Civil War were 110,174 killed and 199,720 who died 
from wounds received in battle, and 24,866 who died in Con- 
federate prisons. 

Liquor in the Philippines. 

Regarding the charge that large numbers of saloons are per- 
mitted to exist in Manila, and of heavy exportations of liquors 
from the United States to the new possessions, official state- 
ments from Lieutenant Bishop, of the Sixth United States 
Artillery, in charge of the Department of licenses in 
Manila, dated March 17, 1900, shows that the number of places 
in Manila in which wines and liquors were sold prior to the 
occupation by the American troops was not less than 3,000, 
while on March 9, 1900, the number was 158 saloons and 613 
wine shops. These native wine shops, it is added in the official 
report, are conducted entirely by natives, Chinese and Mestizos, 
while the patrons are of the same classes, none of these places 
being conducted as a wine shop alone, but invariably associated 
with the sale of food, while the stock of liquor is always very 
small, amounting in most cases to less than $10. 

Another official statement, prepared by the Treasury Depart- 
ment, shows that the value of liquors of all kinds exported 
from the United States to Cuba, Porto Rico and the Philippine 
Islands in 1899 was $1,468,817, against $2,854,439 exported from 
Spam to the same islands in 1890 and $1,770,717 in 1896. 



LIBERAL FORMS OF SELF-GOVERNMENT OFFERED THE 
FILIPINOS. 

The . complaint that the Republican party is governing the 
Filipinos without the "consent of the governed" will receive lit- 
tle attention when coming from a party which tried to dissolve 
the Union so that it might continue to govern four million men 
and women in absolute slavery without their "consent," and even 
now governs a larger number without their consent by depriving 
them of their constitutional rights as voters. It is perhaps worth 
while, however, to answer some of these criticisms by a presenta- 
tion of the facts in regard to the government in the Philippines. 

The proposition submitted to the insurg-ents by the Peace Com- 
mission consisting of Messrs. Schurman, Denby and Worcester, 
in conjunction with the army and navy officials in the Philip- 
pines, stated the following: "While the final decision as to the 
form of Government is in the hands of Congress, the President 
under his military powers, pending the action of Congress, stands 
readj' to offer the following form of Government: A Governor 
General to be appointed by the President; a Cabinet to be ap- 
pointed by the Governor General; all the Judges to be appointed 
by the President; the heads of Department to be either Ameri- 
cans or Filipinos or both, and also a General Advisory Council, 
its members to be chosen by the people by a form of suffrage 
to be determined upon hereafter carefully. The President 
earnestly desires that bloodshed cease and that the people of the 
Philippines at an early date enjoy the largest measure of self- 
government compatible with peace and order." 

The form of government already proposed by the Administra- 
tion for those parts of the islands where the establishment of 



THE PHILIPPINES. 

69 



S^* ^'""y g^ernment has np to this time been prac- 
' Ltice of t'hl 1 .'S' a r d ^ aded by Don Cayotano Arellano, 

inV^i^^ 

tne SToT^iiS ^ theZnieC m - SeS P™T lgate in tWs ° rd « 
ippines are to be estfh^H ? aud the towns of th « Phil- 
the first time the Mi™ ! and & OTeme <i ^ ruture. For 
of soffrag™ in the i,Ff Pe ? ple are to exerelse tte right 
only s%hU y restricted H" !?™Wp-l officers-a rifht 
nnZ-rl fn,- tif ' estneteQ by the conditions which have been im- 

lellV™ h i^^^^VsThi^ ^ T 11 ™ -«ng 'the 
enjoy all the beneK^SJ^Ito?? Tn^* ?^ W ° rthy to 
for the election bv nliifi i i ! The reflations provide 

council and entenlnT who a - t CtorS °/ a , may ° r ( alcalde )> a 
usual reflations ^eLw t ™ t0 - e . na ^* and enforce a11 of the 
agement b of fiance ttelulaLTTT\ gOV ^ ment - the man " 
the establishmenTand rSuUuVaf^v^ ^S^S sanitati ™> 
the establishment and t£S17 P ^ llCe and fire departments, 

of violation ^rf£^ and iSSda'tton? ?5 S "'. *** P^ishment 
all of the duties o tblnJ^ T' the colle ction of taxes, and 

are to be eVeTted lb ^he^ua^ed ^7^™?*- Th€se °^^ 
persons of 23 years of at^o. ******* who are to be male 

able to speak reacl nnd^lS ° ver » \ a ™ff legal residence, and 
an annual tax of 3u n^lnT ? n ? hsh ° r S P ani sh, and paying- 

The military auth or iesi'nr iValen ^ f ° ab ° Ut fifteen dollars^ 
tablishment V n^mic nal ^f^n UnCmg } Ms P lan for the es " 
the provisions of "aw^l e fe " A readin ^ of 

dencies and benefice. .t Tn+1^- demonstrates the purposes, ten- 
ment. Naturally - i s nrpcS We tolrlnf EL*?* ™ GoVe ™~ 
are perfect, but these ^re su^DlJn^nf ^ pr °T isions which 
m order that they mavmJtSSL ^J*™ im P rov ement 

in the development o7p3i^ kee P P*<* 

people, with whom now re^ ts tw o^ led ? 6 ° f . the P^ppine 
shall faithfully admm ister thlt ^? + n of F^^PalHies which 
and liberties. ByTch fcourse of ff ' *?£ Pr ° teCt their rf g- hts 
that they possessMe ^qualificatmns ^T ^ ^ dem ^strate 
and honestly desire thTvvo^^JT.T^ l ° */?? citize *^P 
This is the mere beginnLIS a system^f W "i ° f if* co ™W 
which the Philippine fonrniS T i P* 100 .? 1 self-government 

name is a fuSyo S333 a^ nSKL& Sfft ^ aft ' whose 
to apply in a broader soni +n !),« efficient service, is expected 
in the islands Z™»m^L^ ft ^"J™ 1 man agrement of affair, 
permit. l " aS a return to peaceful conditions will 

DEMOCRATS AND POPULISTS, LED BY BRYAN RATI 
FIED THE TREATY. ""*» KATI- 

Whether the people of the Philippines should continue under 
unorfhl 01 °/. thG ?^ e ™ m «t of the United States must dSfnd 
upon the action of Congress and could not depend upon S 
of the President or his administration. To have dieted onr 
forces to sail away from the Philippines after the destructSn 
the™ • S P anis \P° w er there would have been not only to leave 

would be the scene ot eXssTrife and bloodsSed'^ ^ Va " eyS 
The peace treaty provided for their purchase ' and it w„ = 



70 THE PHILIPPINES. 

position in the army and came to Washington to urge the mem- 
bers of his party to vote for it. This action by Congress added to 
the duties of the President to maintain order in £fee~ Philippine^ 
The treaty ceding the islands to the United States was signed 
December 10, 1S9S; on January 4, 1S99, it was sent to the Senate; 
on February 4 th, the PTlipinos began their attack upon the 
American forces and Aguinaldo issued his proclamation of war 
against the United States. Yet, on February 6th, with these 
facts well known in the United States, by the "advice and con- 
sent" of Mr. Bryan, a sufficient number of Democrats and Popu- 
lists cast their votes in its favor to bring about ratification, and 
the new duty was thus by both parties placed upon the shoulders 
of the President to suppress an insurrection in the territory which 
by that ratification of the treaty was finally acquired two days 
after the insurrection began. Among those voting for ratifica- 
tion were Allen of Nebraska, Populist; Butler of North Carolina, 
Populist; Clay of Georgia, Democrat; Faulkner of West Virginia, 
Democrat; Gray of Delaware, Democrat; Harris of Kansas, 
Populist; Jones of Nevada, Silver; Kenney of Delaware, Demo- 
crat; Kyle of South Dakota, Independent; Lindsey of Kentuckj\ 
Democrat; McEnery of Louisiana, Democrat; McLaurin of South 
Carolina, Democrat: Mantle of Montana, Silver; Morgan of Ala- 
bama, Democrat; Pettus of Alabama. Democrat: Stewart of Neva- 
da, Silver; Sullivan of Mississippi, Democrat; Teller of Colorado, 
Silver; and Wellington of Maryland, and Mason of Illinois, Re- 
publicans, who have since opposed the course of the Administra- 
tion in the Philippines. Thus it will be seen that ten Democrats, 
three Populists, four Silver men, one Independent, and Senators 
Mason and Wellington voted for the ratification of the treaty ab- 
solutely conveying the Philippine Islands to the United States 
two days after tlie breaking out of the insurrection, whose suppression tliefi ore 
denouncing — a suppression made absolutely unavoidable by the ratification 
uJtirh could not have been accomplished gxcept by ihe%otes of those men. some 
of idiom irere at that moment in close consultation with and presumably act- 
iny by the advice of Mr. Bryan, who admits in his Indianapolis 
speech of August 8th, 1900, that he favored and urged the rati- 
fication of the treaty. 

The treaty with the Sultan of the Sulu Islands has been criti- 
cised on the ground that it did not immediately terminate 
slavery and polygamy. It need scarcely be said that the in- 
sistence liDon such radical changes in the"~ long-established cus- 
toms of the people of those islands would have rendered the 
treaty of peace with them impossible; though, as is shown by 
Hie President's message, a provision is made in the treaty thai 
any slave shall Lave the right to purchase freedom and that 
<ien. Gates, who made the treaty, was directed to communicate 
to the Sultan that "this agreement? is not to be deemed in any 
way to authorize or give the consent of the United States to the 
existence of slavery in the Sulu Archipelago." A criticism of this 
character will have little weight when coming from a party 
under which polygamy was allowed to assume such formidable 
shape and slavery was maintained even to an unsuccessful at- 
tempt to destroy the Union. There has also been criticism of the 
fact that the treaty agreed to an annual payment to the Sultan 
and certain of his subordinates. The sum which it agrees to pay 
is $9,120 per annum, while the sum which the Democratic ad- 
ministration proposed to pay to the King of the Hawaiian Islands 
and his associates, when the treaty of annexation was negotiated 
under President Pierce in 1854, was $100,000 per annum. (For 
details of the Democratic efforts to annex Hawaii, Cuba and 
other islands, see page 6999 of "Pages from the Congressional 
Pecord.") 



THE TEMPORARY INCREASE OF THE ARMY. 
It was authorized by Democratic and Populist, as Well as 
Republican Votes. 

When the war with Spain began we had an array of but 87,000 
men. It became necessary to enlarge it, and it was enlarged 
to 65,000 men, with authority to call a large number of volun- 
teers in addition, but it was provided in the law that when pea-re 
was declared with Spain the regular army should fall back to 



THE rHUJPriNPJS. 71 

27,000 men and all the volunteers should be discharged. Peace 
having* been established by the exchange of ratifications on 
April 11, 1899, the army by force of this law was reduced ag-ain 
to 27,000 men, which was confessedly too small an army to deal 
with the situation then existing in Cuba, Porto Pico and the 
Philippines, some insisting that we should immediately enlarge 
our army to 100,000 men; others insisting that until all these 
possessions should be pacified we would not know how large 
our permanent establishment should be, though as reduced the 
army would not be much greater than necessary to man our 
fortifications at home. The house had passed a bill increasing 
the regular army to 100,000 men. It was argued with force in the 
Senate that the insurrection then in progress in the Philippines 
constituted the chief necessity for an enlargement of the army, 
and that when the rebellion ended this necessity would no 
long-er exist. But so urgent was the necessity for a temporary 
increase, and so universally was this necessity recognized, that 
on February 24th the senate committee on military affairs unan- 
imously rej)orted a military bill to meet and provide for this 
emergency — democrats, republicans and populists uniting in this 
report. The bill provided that the regular army might be re- 
cruited temporarily under the direction of the president to 
05,000 men, and in addition 35, 000 volunteers were authorized, 
all of irhom to be enlisted to serve until July 1, 1901, or for tiro 
years and four months, thus providing for a temporary army of 
100,000 men, or so many thereof as might be necessary, to serve for 
tiro years and four months. 

The bill was debated for two full days in the senate and was 
as fully understood in its chief purpose by senators as any other 
bill which ever passed that body. It was well known and stated 
over and over again, in the debate that 1he main purpose of this 
authority given to the president was 1o use the forces thus cre- 
ated for the suppression of the insurrection in the Philippines 
and to maintain our sovereignty. There were a few senators 
who opposed the bill, and they opposed it on the ground that 
it was in substance a direction to the president to suppress the 
insurrection with armed force. This was also stated to be its 
chief purpose by democrats who favored the bill; who claimed 
that we, having acquired sovereignty, they were constrained to 
give the president the necessary power to suppress the existing 
rebellion in order that the honor and credit of the nation might 
be upheld. After this full debate in the senate the bill passed 
that body by a vote of 55 to 13. It was supported by all the hti<l- 
ing democrats of that body, by Senator Teller, Senator Altai. Senator 
Stewart and all the populists save one, so that three-fourths of the 
Ben-afce with full knowledge of the aim and purpose of the bill 
voted for its passage. 

The bill then went to the house of representatives and. although 
the debate Mas brief, the purpose and effect of the bill were 
clearly pointed out by many democrats in the debate. The bill 
passed the house by a rote of 203 to 32, those in the ncoatirc being 
too few in nuinlwr to eren hare the ayes and noes recorded. This 
bill placed afnrmativejy, and with great emphasis of speech and 
votes, in the hands of the president the military power which 
he is now using in the Philippines, and clearly and with empha- 
sis, said to him, it is the will and purpose of congress that the 
authority of the United States shall be maintained in these is- 
lands as well as in every other possession of the United States. 
Having this power in his hands without using it would render 
him liable to public censure by congress and the people of the 
United Stales. 



LIBERAL MEASURES OF LOCAL SELF-GOVERNMENT 
CONTEMPLATED. 

The President and the Republican Party are committed to 
the general proposition that with peace established and order 
restored in the Philippine archipelago, provision will be made 
for the largest measure of liberty possible in the Islands, and 
that the local governments shall be so far as possible within, 
the control ami supervision of the inhabitants of the Inland?., 
and thai (here win be established there the principles underly- 
ing our system of government to be administered by the in- 



r 



73 THE PH1L.1P1MNKS. 

habitants so far as possible, making 1 secure the rights of per- 
son and property. All these measures arc measures to be provided 
for within the discretion and power of Congress and are not to be 
provided for, except temporarily, by the Executive in the exercise of 
military power. This power, however, must be exercised so as 
not to impair the obligations created by the United States in 
the treaty of peace with Spain, found in articles 4, 8, 9, 10 and 
15 of said treaty. 



SOME DEMOCRATIC VIEWS ON THE PHILIPPINES. 

(Senator Morgan, of Alabama (Dem.), in Congressional Record, May 2~>, 

1900.) 

"No thoughtful man and no political party seems to be ready 
to withdraw from the Philippine Islands and leave those people 
to their own government and to the gratification of their hatreds 
and revenges, or to leave those of other nationalities without the 
security we have engaged to give them in the Treaty of Paris. 
* * * I was in favor of the ratification of the Treaty of Paris, 
and still adhere to that conviction of duty. I believe that it is 
the most advantageous treaty, next to our treaties of annexation 
of territory from Mexico, that the United States concluded in the 
nineteenth century. I am proud of the methods and of their 
heroic support of our army and navy that forced this treaty 
from an arbitrary, cruel Spanish Bourbon despotism and again 
opened the way for our Republican institutions. I welcome this 
open door of relief to the people of the South, especially in their 
honorable struggles to repair the losses and humiliations, of the 
war between the States, and I honor the President and our 
Commissioners for leading us in this course of national duty to a 
glorious result. Neither could I refuse the happy result that 
brought to our people a new and splendid opportunity to again 
expand their influence to the distant islands of the Pacific Ocean 
that had so nobly inspired Mexico and all of Central and South 
America to redeem themselves from the thraldom of this same 
Spanish despotism. The blessing of Heaven has followed our in- 
fluence in all these regenerated countries, and I thank God for 
their deliverance, and could not add that I refuse to thank Him 
for the deliverance of the Philippines. I am satisfied that the 
President is conducting the civil and military government in 
the Philippines with good success and under powers derived 
from the Constitution speaking through the laws of nations that 
are ample for the occasion." 

(Hon. J. L. McLaurin, of South Carolina (Dein.), in the United States 

Senate, February 28, 1900.) 

"Some of the recognized leaders of the Democratic party pro- 
claim anti-expansion as one of its policies, thus seeking to make 
it a purely political issue. It is a view entirely opposed to the 
history of our country and the principles and practice of De- 
mocracy for three-quarters of a century. The first great ex- 
pansion of this country was the Louisiana purchase of 1,222,000 
square miles by Thomas Jefferson. The acquisition of Florida 
in 1819 was made by another Democrat — Mr. Monroe. The an- 
nexation of Texas in 1845, and of California, New Mexico, Ari- 
zona and Nevada in 1848, was effected by another Democrat- 
James K. Polk. Stephen A. Douglass, speaking of the annexa- 
tion of Cuba, said: 'I am in favor of expansion, as far as con- 
sistent with our interests and the increase and development of 
our population and resources.' It will thus be seen that under 
Democratic administrations the area of the United States, which 
was 827,000 square miles in 1798, was increased to 3,800,000 square 
miles, and that the leaders of the Democratic party have been 
the authors and promoters of all the 'imperialism' that there is 
in the principles of the Government to-day. In the annexation to 
the United States by treaty of Louisiana, Florida, California, 
New Mexico and Arizona, the consent of their inhabitants was 
not obtained or even sought. * * * Who can believe that the 
United States, with her traditions, her history and her achieve- 
ments, would seek, in shame and dishonor, to oppress any people 
and sacrifice the lives of her citizens in such an unholy con- 
quest? Those who attempt to besmirch our fair name and pro- 



THE PHILIPPINES. 73 

claim to the world that we are living- and practising a lie in our 
republican institutions. 1 am a Democrat, loyal to the party 
and its principles, but I am not an automaton nor a slave, to be 
moved by the party lash. I am trying to represent what I be- 
iie\e is best for my people and my section; and am content to 
lei the, future speak lor itself, binder a destiny unforeseen and 
unermtrolled by us, the power and institutions of the United 
Slates have been expanded in the East. I believe that if we do 
our duty it means not only the elevation and uplifting of the 
peoples of that far-off land, but that it will add to the power 
and glory of our free institutions and the commercial supremacy 
of the United States." 

(Hon. Townsend Scudcler, of New York (Dern.), in the House of Repre- 
sentatives, March 8, 1900.) 

"We have expanded. Now is the time to act wisely and in 
keeping with the lofty sentiment which justified our interference 
in the war for Cuba, justified the war we waged with Spain, the 
war we gloriously won. We took Porto Eico and the i'hilipx)ines 
by way of indemnity for the cost of the war, and we paid Spain 
twenty milions to boot — just why, I have never been able to 
understand. All this was accomplished by the sovereign will 
of the American people, expressed through their agents in Con- 
gress. The wisdom of taking these islands is no longer a ques- 
tion of practical concern; they are ours in fact. The Constitu- 
tion was made by the States, and for them alone. Territories are 
the property of the United States, and Congress can dispose of 
them as it pleases. We must administer our new dependencies 
so as to gain their confidence, their faith and good-will. Along 
these lines we have been put to the test in the past and have 
met with success. (Jive them an honest, independent form of 
government; as they progress, extend the system of local govern- 
ment, teach them to govern themselves — until finally they shall 
be as free as is one of our Territories.'" 



THE PHYSICAL CHARACTERISTICS OF THE PHILIP- 
PINES. 

The Philippine Islands number more than 1,200, but of these 
the important islands are less than a dozen in number. They form 
the most important group in the Pacific aside from the group 
known as the East Indies, lying immediately south of. the Phil- 
ippines. The population is, according to the best estimates, about 
9,000,000. Agriculture is the chief occupation, yet only one-ninth 
of the surface is under cultivation and the fertile soil is capable 
of producing enormous quantities of hemp, sugar, tobacco, coffee, 
cacao, rice and other articles of tropical production of which the 
Tinted States now imports nearly 300 million dollars' worth per 
annum. More than one-third of the sugar now imported into the 
United States comes from the adjacent islands, the Dutch East 
Indies, whose similarity of soil and climate justifies the belief 
that the Philippines may, with proper development, furnish our 
sugar supply until the beet-sug-ar industry in the United States 
shall be sufficiently developed to furnish the $100,000,000 worth of 
sugar which we now annually import; and the development of 
this beet-sugar industry will not be at all retarded by the con- 
trol of cane-producing- areas, since the Kepublicans in Congress, 
during the consideration of the Porto Eican bill, clearly estab- 
lished the precedent and asserted the right to maintain such 
tariffs between the United States and any of the islands in ques- 
tion as might be required for the protection of any industries 
.of this country. In another article of large and important im- 
portation, absolutely required in our manufacturing' industries — 
manila hemp — the Philippines are the chief, almost exclusive, 
producers. In minerals there is reason to believe that impor- 
tant supplies for our industries may be obtained in these islands. 
Nearly all of the tin of the world is now produced in the imme- 
diate vicinity of the Philippines, more than 80 per cent coming- 
from the mines of the Malayan peninsula, apparently of the same 
general formation, and it is not improbable that the constantly 
increasing demand for this article in the manufacture of tin 



74 THE PHILIPPINES. 

plate in the United States, now so successful under the protection 
granted by the Republican party, may be met from the Phil- 
ippines. 

The imports of the Philippine Islands amounted in 1896 to 
$28,000,000 and their exports to about $33,000,000. The chief im- 
portance of these islands, however, considered commercially, lies 
in their proximity to the enormous consuming' population of 
Asia, which lies in easy reach of Manila as a point of distribu- 
tion. The annual imports of the Asiatic countries, as shown by 
a table on page 195, amount to over $100,000,000 per month, or oiu- 
billion 250 million dollars per annum, and practically all of these 
are classes of articles which the peoine of the United States pro- 
duce and for which they desire to find a market. Cotton and cot- 
ton goods, mineral oils, manufactures of iron and steel, bread- 
stuffs, provisions, and practically all the products of the farm 
and factory find a ready sale in, and indeed are the chief impor- 
tations of that group of Asiatic countries containing" more than 
half the people of the earth and for which Manila forms a natural 
commercial center and distributing point. Asiatic llussia, Japan, 
China, French indo-China, Siam, Straits Settlements, Burniah, 
India and Australasia are in comparatively easy reach of Manila 
as a commercial center, some of the most important of their ports 
lying as near to that city as Havana lies to the city of New York, 
and vastly nearer than any other commercial center. With the Ha- 
waiian and Samoan Islands as way stations for vessels carrying 
the commerce of the United States either from the Pacific coast 
or from the Atlantic coast through a Nicaraguan canal, Manila 
as an entrepot for the storage, sale and distribution of American 
products to this vast consuming population, offers unprece- 
dented advantages in a market in which a preference for Ameri- 
can goods is already plainly shown, as indicated by the rapid 
growth in our exports to that country, shown by tables on page 
310. 



Not a blow has been struck except for liberty and humanity 
and none will be; we will perform without fear every national 
and international obligation. — President McKinley to Notifi- 
cation Committee, July 12, 1900. 

It is no longer a question of expansion with us; we have 
expanded. If there is any question at all it is a question of 
contraction; and who is going to contract? — President McKin- 
ley at Iowa Falls, la., Oct. 16, 1899. 

We have been moving in untried paths, but our steps have 
been guided by honor and duty; there will be no turning 
aside, no wavering, no retreat. — President McKinley to Noti- 
fication Committee, July 12, 1900. 

No imperial designs lurk in the American mind. They are 
alien to American sentiment, thought, and purpose. Our 
priceless principles undergo no change under a tropical sun. 
They go with the flag. — President McKinley at Boston, Feb. 
16, 1899. 

The sovereignty of the United States in the Philippines 
cannot be given away by a President. That sovereignty be- 
longs to tke people; and so long as that territory is ours, * 
— the President of the United States has but one duty to per- 
form, and that is to maintain and establish the authority of 
the United States in those islands. — President McKinley at 
Independence, la., Oct. 16, 1899. 

This subject of expansion is not a new one. It was the gos- 
pel of the early statesmen and patriots of this country. It 
found substantial realization in the magnificent achievement 
of that illustrious statesman, Thomas Jefferson. It was the 
dream of Marcy. In 1853 he sought to acquire the Hawaiian 
Islands. It was the dream of Seward; it was the dream of 
Douglas. — President McKinley at Madison, Wis., Oct. 16, 
1899. 



THE HAWAIIAN ISLANDS. 

Attitude of the two Parties on Annexation. 

The history of the Hawaiian Islands is so well known that 
detailed statements will not be required. The first recorded ef- 
fort at annexation was by a Democratic President, Franklin 
Pierce, who in 1853 and 1854 instructed his Minister to Hawaii, 
Mr. Gregg", through his Secretary of State, Mr. Marcy, to formu- 
late a treaty for the annexation of the Hawaiian Islands to the 
United States. Minister Gregg was authorized to make compen- 
sation to the rulers and chiefs of the islands for the surrender 
of their political position, and Secretary Marcy, in his instruc- 
tions, said: "This provision should not be, as I conceive, any 
other than a pecuniary allowance; in this respect the United 
States would manifest toward them a liberal spirit; annuities 
to the amount of $100,000, to be distributed in such manner as 
they would prefer, might be secured to them in the treaty" — 
a proposition by a Democratic official which puis in strange light 
the Democratic criticism of to-day of the action of the jjresent 
Administration in making' a treaty with the Sultan of the Sulu 
Islands by which the annuities amount to $9,120, as shown by a 
copy, of the treaty, published on page 351. Secretary Marcy fur- 
ther said of the treaty itself whan received: '"The President di- 
rects me to say that he cannot approve of some of the articles. 
There are in his mind strong objections to the immediate in- 
corporation of the islands in their present condition into the 
Union as an independent State. It was expected that the Ha- 
waiian Government would be willing to offer the islands to the 
United States as a territory and to leave the question in relation 
to their becoming a State to the determination of this Gov- 
ernment, unembarrassed by stipulations on that point. * * * 
This Government will receive the transfer of the sovereignty of 
the Sandwich Islands with all proper provision relative to the ex- 
isting rights and interests of the people thereof such as are usual 
and proper to territorial sovereignty. It will be the object of the 
United States, if clothed with the sovereignty of that country, 
to promote its growth and prosperity. This consideration alone 
ought to be a sufficient assurance to the people that their rights 
and interests will be duly respected and cherished by this ( lov- 
er n men t." 

The second definite attempt to bring about the annexation of 
Hawaii to the United States was set on foot by the people of the 
islands in January, 1893, when a provisional government was 
formed and a Commission sent to Washington authorized to ne- 
gotiate a treaty for the annexation of the islands to the United 
States. The treaty was agreed upon and sent to the Senate 
by President Harrison on February 15, 1893, and favorably re- 
ported by the Committee on Foreign Relations, but had not re- 
ceived action by the Senate when President Harrison's term ended, 
on March 4. Within three days after his inauguration President 
Cleveland had withdrawn the treaty and despatched James H. 
Blount as a Commissioner to the Hawaiian Islands, and upon the 
strength of his report, the President in the following" December 
sent a message to Congress announcing his intention to restore 
Liliuokalani to the throne, and in the following month his Min- 
ister, Mr. Willis, announced President Cleveland's decision to 
President Dole, the head of the provisional government which the 
people of Hawaii had formed meantime. This proposition was 
met with such a firm refusal of compliance on the part of Pres- 
ident Dole that Minister Wtillis did not attempt to carry out 
President Cleveland's wishes for the restoration of Queen Lili- 
uokalani, and the indignation throug-hout the United States 
was so intense that no further effort was made in this line. 

President MeEinley was inaugurated on March 4, 1897. The 
Hawaiian Commissioners shortly afterward appeared in Wash- 
ington and proposed a treaty of annexation, which was sent to 
the Senate on June 16, but as the special session was devoted ex- 
clusively to the passage of the new Republican tariff law, no 

75 



r 



76 THE HAWAIIAN ISLANDS. 

action on the treaty was taken. In the following- March a joint 
resolution was reported to the Senate ratifying- the cession of the 
Hawaiian Islands and annexing them as a part of the territory 
of the United States, and this resolution passed the House by 
209 yeas to 91 nays, and the Senate by 42 ayes to 21 nays. A 
Commission was appointed, with Senator Cullom, of Illinois, as 
its chairman, to visit the islands to frame a form of 
government, and in April, 1900, an act was passed through both 
branches of Congress and approved by the President extending 
the Constitution and all laws of the United States not locally 
inapplicable over the territory of Hawaii, establishing a Territo- 
rial government, with its capital at Honolulu, and providing- that 
all persons who were citizens of the Republic of Hawaii on Au- 
gust 12, 1898, shall be citizens of the Territory of Hawaii. The 
act establishes a Legislature for the Territory of Hawaii, its 
members to be chosen by the qualified voters of the island, the 
Governor and Secretary to be appointed by the President, as is 
the case with the Governors of our Territories. The extension 
of the Constitution and revenue laws of the United States over 
the Territory of Hawaii eliminates all tariff on articles entering 
the United States from Hawaii or the Hawaiian Islands from the 
United States. This differs slightly from the provision made for 
Porto Pico, although the President is authorized by the Torto 
Pican act to suspend the collection of duties on commerce be- 
tween that island and the United States at any time that the lo- 
cal government of the island shall have provided sufficient funds 
to meet its requirements. In the case of Hawaii practically all 
articles passing between those islands and the United States had 
for many years entered free of duty under the very liberal reci- 
procity treaty which had been in existence since 1875, and it was 
conceded by all parties, in view of the fact that the people of 
Hawaii had voluntarily asked admission to the Union, that our 
revenue laws and Constitution should be extended over the 
island. 

The physical characteristics of the Hawaiian Islands are so 
Well known that they need no detailed description. The popula- 
tion is in excess of 100,000, and the chief productions are sugar, 
coffee and tropical fruits. The consuming power of the islands 
has been in the past about $25,000,000 annually, of which the 
large proportion has been purchased from the United States by 
reason of the existence of a reciprocity treaty since 1875. The 
chief value of the islands from the national standpoint lies in 
their importance as a way station on the commercial line be- 
tween our Pacific coast and the great Asiatic Held where dwells 
half the population of the earth and whose annual purchases 
amount to $100,000,000 a month and whose disposition to buy 
from the United States is clearly increasing year by year. As a 
cable, coaling and repair station and as a harbor of refuge, the 
Hawaiian Islands have long been of extreme value. Prom them 
the lines of commercial vessels radiate in every direction like the 
spokes of a wheel; and when to this magmificent possession in 
the midst of the North Pacific is added the Island of Tutuila in 
the Samoan group, with its splendid harbor — the best by far in 
all the South Pacific — which was added to our possessions in 
the Pacific under President McKinley's Administration, it will 
be seen that the United States now possesses far greater facil- 
ities for commerce on the Pacific than does any other country. 
Our coast line on the Pacific, including that of our Pacific States 
and Alaska and the Aleutian chain at the North, and the Philip- 
pine Islands exceeds by far that of any other nation. Our coast 
harbors and our island harbors of the Pacific are far superior to 
those of any other nation, and with Hawaii, Wake Island, Guam 
and the Philippines all added in the short three years of Pres- 
ident McKinley's Administration, our facilities for a trans-Pacific 
cable and enlargement of commerce with Asia are vastly superior 
to those controlled by any other government. 



The patriotism of the American people takes the place of 
a large standing army. We do not need such an army in the 
United States. We can have an army on any notice if the 
nation is in peril or its standard is threatened.— -President 
JKcKinley at St. Paul, Minn., Oct. 12, 1899. 



THE SAMOAN ISLANDS. 

Tutuila, the Samoan Island which passed under the control 
of the United States in 1899, becomes an extremely valuable 
addition to the possessions of the United States in the Pacific. 
With but a small area ami population, which, according to the 
Treasury Bureau of Statistics, are but 54 square miles and 4,000 
population, it possesses the most valuable island harbor in the 
South Pacific and perhaps in the entire Pacific Ocean. A repre- 
sentative of the London Times recently in Washington, who had 
visited and was thoroughly familiar with not only the Samoan 
Islands, but those of the Pacific generally, pronounced the har- 
bor of Pango-Pango, in the island of Tutuila, the best in all 
the Pacific and the Pearl Harbor in the Hawaiian group the 
next in value as a harbor, the United States thus being the pos- 
sessor of the chief island harbors and ports of call, supply and 
repairs in the Pacific Ocean. 

The interest of the United States in the Samoan Islands, and 
especially Tutuila, which now passes completely under our con- 
trol, began in 1872 when Commander Meade of the United States 
Navy made a treaty with Maunga, the great chief of the Island 
of Tutila, by which the port of Pango-Pango was to become 
the property of the United States on condition that a friendly 
alliance be made between the island and this Government. 
President Grant, in a message sending the treaty to the United 
States Senate in that year, said: "The advantages of the con- 
cessions which the treaty professes to make are so great in 
view of the advantageous position of Tutuila seaport as a coal- 
ing station for steamers between San Francisco and Australia 
that I should not hesitate to recommend its adoption but for 
the obligation of protection on the part of the United States 
which it seems to imply." This "obligation of protection" was 
afterward modified by the Senate which then ratified the treaty, 
which in turn was accepted by the Samoan chief, the final treaty 
was sig-ned on January 7, 1878, and the ratifications exchanged 
on February 13, by which the right to establish at Pango-Pango 
a station for coaling, naval supplies, freedom of trade, com- 
mercial treatment as a favored nation, and extra-territorial con- 
sular jurisdiction were secured to the United States. The ex- 
tension of United States control over the entire island according 
to the plan proposed by Germany and Great Britain consum- 
mates the wishes expressed by the chief of the island in the 
draft of the treaty forwarded to the United States in 1872, and 
thns brings the people of the island into closer relations with 
this Government for which they asked on that occasion. 

Commercially, as already indicated, the island is extremely 
important in its relation to transportation between the United 
States and Asia and Oceanica, though unimportant as to local 
production or consumption, the entire importation of the Sa- 
moan g-roiip being but a half million dollars annually, the bulk 
coming from the Australian colonies, the nearest sources of 
supply, while the United States and Germany divide about equal- 
ly the remainder of the trade. 

The port of Pango-Pango was, shortly after the treaty, sur- 
veyed by the U. S. Government and a coaling station was es- 
tablished last year. In considering the value of Tutuila and its 
harbor of Pango-Pango it is proper to add that the Samoan 
naval disaster of 1889, in which a number of naval vessels were 
wrecked during a severe storm, occurred in the roadstead of 
Apia on the island of Upolu, and not in the land-locked and well 
protected harbor of Pango-Pango. 



We now, almost for the first time in our history, know no 
North, no South, no East, no West, but are all for a common 
country.— President McKinley at Yankton, S. D., Oct. 14, 1899. 

We should no longer contribute directly or indirectly to 
the maintenance of the colossal marine of foreign countries, 
but provide an efficient and complete marine of our own. — 
McKinley's letter of acceptance, 1896. 

77 ■ ' 



"IMPERIALISM." 

The Kansas City platform declares that the paramount issue 
of the campaign is "imperialism." This was a concession of 
the ruling* spirits to a defeated faction. After Bryan and his 
fellow-champions of free silver had forced their specific reitera- 
tion of the demand for the free coinage of silver at 16 to 1, thus 
carrying- the main point of their fight, they were willing* to salve 
the defeat of the more conservative portion by appearing* to put 
forward another question. 

"Imperialism" a Fiction. 

The so-called issue of "imperialism" is a fiction. There is and 
can be no such thing* as "imperialism" under a republican form 
of government. The democratic convention did not dare to 
array itself against expansion. It well knew two things; first, 
that the expansion which has come as the fruit of the Spanish 
war was the inevitable necessity of its conditions, and, second, 
that the great body of the American people recognize this 
truth and accept the present results as unavoidable and settled. 
The convention, therefore, took good care not to declare itself 
against this popular sentiment, and in place of it undertook to 
make a fictitious issue. But there is no such thing* as -"imperial 
ism" as distinguished from expansion. This is proved by our 
past history and by the present situation. 

What is "imperialism," so-called? What do the creators of 
this fiction mean by it? Imperialism is sovereign rule without 
Jaw. It is the government of a people by personal will. Law 
comes to the people through their representatives. Where law 
rules imperialism does not and cannot exist. The President 
of the United States has no power and exercises none except 
by virtue of law. When he exercises the war power, he does 
it under law. When he exercises the power to suppress insur- 
rection against the authority of the United States, he does it 
by command of law. 

There is no Imperialism. 

Apply these fundamental truths to the present situation. It 
cannot be pretended that there is any "imperialism" as to Porto 
Eico. Porto Rico, having passed beyond the necessity and the 
period of military government, is governed by a law of Congress 
passed for that purpose. This law prescribes its form of gov- 
ernment, establishes its governor and other administrative offi- 
cers, creates a legislative body to represent the people, and pro- 
vides for the complete machinery of civil government. The 
President himself exercises no authority in Porto Rico except as 
directed by this law. There is, then, no imperialism there. 

How about the Philippines? It is equally true that the Pres- 
ident exercises no authority in the Philippines except by virtue 
of law. The power under which he is suppressing insurrection 
is conferred by the Constitution, which is the highest 
law. The power under which he establishes military 
government, or creates temporary civil authority pend- 
ing the action of Congress, is conferred by law. He would 
violate law if he did not use his power to suppress insurrection. 
That is, if he failed to do just what he is doing now, he would 
set up his own will against the Command of law, and to set up 
individual will without law or against law is imperialism. The 
very course proposed by those who profess abhorrence of imper- 
ialism would itself be imperialism, while the action which they 
condemn as imperialism is itself obedience to law. 

The existing conditions in the Philippines will be changed 
when the insurrection shall be fully suppressed and when Con- 
gress shall determine. Congress did not pass a law for the gov- 
ernment of the Philippines, as it did for Porto Rico, because 
the Philippines were not ripe for it. The insurrection must 
first be suppressed and the authority of the United States fully 
recognized , Congress did not act on the subject because the 

78 



"IMPERIALISM.' 4 79 

President was exercising" the war power, and it wanted him 
to continue exercising it until its purpose was accomplished. 
The very fact that Congress did not act was equivalent to a dec- 
laration that the existing law under which the President i 
proceeding is required for this emergency and that the time had 
not yet come for further law. The essential fact is that every 
step which the President has taken is in conformity with law, 
recognized and approved by Congress in session at the time, 
and where law rules there can be no such thing as imperialism. 

Former Experiences in Expansion. 

This lesson is confirmed and made complete by a review of 
our history. We have had repeated expansions. We have from 
time to time acquired new territory and new peoples. In every 
case our Government has dealt with the new territory and its 
inhabitants precisely as our Government is dealing- with the 
present new territory and its inhabitants. We are now follow- 
ing a long- line of precedents. A long course of history has 
prepared the way and determined the general chart for what we 
are now doing. When Thomas Jefferson, the author of the Dec- 
laration of Independence and the first democratic President. 
made the Louisiana purchase,, he exercised American authority 
exactly as President McKinley has exercised it over Porto Rico 
and the Philippines, except as the insurrection in the latter 
archipelago has required special treatment. Mr. Jefferson and 
the Congress of his day provided a local government for Lou- 
isiana which represented American authority. They created a 
governor and council. They established all the administrative 
machinery. They defined and appointed all the officers. They 
did all this wholly by virtue of the national power and without 
stopping to ask the consent of the people over whom this gov- 
ernment was extended. 

The same course was repeated when the Florida cession was 
made, and it has been repeated in every subsequent acqui- 
sition of territoiy. Not only have we extended the flag over new 
peoples, but in many cases we have, for reasons we deemed 
sufficient, kept them in a dependent position for more than half 
a century. New Mexico came to us from the Mexican war, and 
it is still in a territorial condition. Alaska was purchased from 
Russia in 1867, and it was only last winter that the law was 
passed which gave it a substantial civil government. From 
the beginning of our government we have had Indian tribes 
within our domain. We have recognized that they were not 
capable of the same measure of self-government as our own 
people, and we have kept them in a separate and dependent 
position. We have not allowed one Indian tribe to rule over 
another, and have not permitted them to establish a confederacy 
among; themselves. We have held that they were under our do- 
minion, and that it was our province to establish such a relation* 
ship as was best for our interests and for their own. 

Expansion under all Parties — It was never before called 
"Imperialism." 

This acquisition of territory and the establishment of our 
authority over it at our own discretion has gone on under ad- 
ministrations of all parties, Democratic, Whig and Republican, 
and though the application and enforcement of our authority 
were made upon precisely the same principles as now, nobody 
ever before urged the charg-e of "imperialism." If we have im- 
perialism now, we have had imperialism in all our other ex- 
pansions from Jefferson's Louisiana purchase in 1803. If it be 
imperialism to hold the people of acquired territory in a differ- 
ent relation toward the government from that held by our own 
people, until they are prepared to assume the same relation, 
then every single expansion of our domain has been marked by 
imperialism. If it be imperialism to exercise our sovereignty 
without stopping to ask the consent of the people over whom 
it is extended, then again our history has been stamped with 
imperialism from the beginning*. We have never asked the con- 
sent of the new peoiJes over whom our territory has spread. 
We have proceeded in every case to govern them as we deemed 



80 "IMPERIALISM. '• 

best for their interest and our own. As soon as they have be- 
come fit for self-government we have given them self-govern- 
ment. Until they have become thus lit for self-rule, we have 
provided such government as the conditions demanded. All this 
was the rule of law — sometimes of special law for special cases, 
sometimes of a general policy more widely applicable. Our rule 
has been enforced in harmony with the spirit of American in- 
stitutions, and founded upon the elementary principles of lib- 
erty, justice and right. It may, therefore* be repeated that 
there is no such thing as imperialism under the American flag 
as distinguished from expansion. Expansion is a fact; imper- 
ialism is a fiction. Expansion means a distinct, comprehensible 
reality; imperialism is only a misapplied name of an imaginary 
bubble. The substance of expansion cannot be confounded with 
the vaporing of imperialism. 

Expansion was not sought or desired. 

The administration has not favored even expansion for ex- 
pansion's sake. Except in the case of Hawaii, which had itself 
long ago applied for annexation, it did not seek the territory 
which has come under our flag. This expansion has come as the 
unavoidable result of the Spanish war. It w-as the universal 
demand of the American people that Spanish power should be 
expelled from the western hemisphere. The fate of the war 
brought the same destruction of Spanish power in the Philip- 
pines. Since it was overthrown by American arms, the Ameri- 
can nation became responsible to the world for what should 
take its place. We had extinguished Spanish authority: we 
could not permit anarchy: we could not throw the Philippines 
into the turmoil of foreign contention; the only thing left was 
to accept the responsibility ourselves. In accepting this re- 
sponsibility we are fulfilling the highest national obligation of 
humanity and civilization, and to call the performance of that 
duty imperialism is simply an attempt to mislead the people 
with an opprobious term. Ours is a goverment of the people, 
by the people, and for the people. Imperialism is autocratic 
rule wuthout law and ag-ainst the public will. To charge im- 
perialism under American institutions is an affront to the in- 
telligence and character of the American people. 

The administration has broken the yoke of Imperialism. 

President McKinley has himself pricked the bubble in asugges- 
tive and striking sentence. In his speech of acceptance at Can- 
ton he said, "The Republican Party was dedicated to freedom 
forty-four years ago. It has been the party of liberty and eman- 
cipation from that hour; not of profession but of performance. 
It broke the shackles of four million slaves and made them free, 
and to the party of Lincoln has come another supreme oppor- 
tunity which it has bravely met in the liberation of ten mil- 
lions of the human race from the yoke of imperialism." There 
is the whole truth in a nutshell. The administration has broken 
the yoke of imperialism, not established it. It has freed the 
Philippines from imperialism, not subjected them to it. It has 
relieved them from oppression without law and given them lib- 
erty under law. The party that came into being to make lib- 
erty the rule of law will never countenance imperialism without 
law. 



THE GERMAN VOTE AND THE "IMPERIALISM" 
BUGABOO. 

In 1S96 the Germans voted for President McKinley. They are 
strong believers in the advantages of a gold standard of cur- 
renc3\ This the Republican party has given them. They know 
that should the Democratic candidate for President be elected, 
which of course would mean Democratic control of Congress, 
then the gold standard law would be repealed and free coinage 
of silver will be foisted upon the country. The Germans do not 
want this. They know that they fare better here, can make and 
save more money than they did in the Fatherland, and they are 
nui ;i people who are led away by Rights of the imagination. 



'IMPERIALISM." 



81 



An effort is being made to bring- the Germans into the Demo- 
cratic line by scaring them with the bugaboo of imperialism, 
which it is claimed would compel a large increase in our mili- 
tary forces. Many of them have come here to escape the strict 
military laws that are in force in Germany, and naturally they 
would not favor anything tending in the same direction in this 
country. It is well that this subject lias developed thus early 
in the campaign, because the Germans will have time to read 
and study what the actual conditions are as to our military 
forces, comparing them with their Fatherland. 

Germans- has over 52,000,000 people. Its standing army is 
(100,000 men, an average of 11% soldiers to every 1,000 people. 
The United States has 70,000,000, and a temporary standing army 
of 05,000 men, which is equivalent to less than 1 soldier to 
every 1. 000 of our population. While Germany has nearly 11 
soldiers more per 1,000 of her people than we have, there can 
not be the slightest chance of the effect of imperialism being- 
experienced in this country. 

The following table shows the leading countries of the world, 
with their population, their standing army, and the number of 
soldiers each country has per 1,000 of its people: 



Country. 



Population 



France 38,500,000 

Germany 52.800,000 

Austria-Hungary 41,800,000 

Russian Empire 129300,000 

Turkey 33,600,000 

38,000,000 
29,700,000 
76,000,000 



Great Britain. 

Italy 

United States. 



Army. 



560.000 
600,000 
280,000 
700,000 
240,000 
210,000 
* 210,000 
t 65,000 



Soldiers 

per 1,000 

Population. 



14.05 
11.05 
6.07 
6.01 
7.01 
5.06 
7.01 
.86 



'* Peace footing. 



t War footing. 



France has 14 soldiers to every 1,000 of its population; Ger- 
many more than 11; Austria-Hungary and Russia more than 
6 each; Turkey and Italy each more than 7; Great Britain more 
than 5%, while the United States has less than 1 soldier per 
1,000 of its population. These figures are certainly not indi- 
cators of the military strength of the United States ever being 
increased to the proportion that exists in European countries. 

As a city grows in size and extends its area, the first thing for 
which the citizens living there ask is more police protection. 
Our country is like a large city, and the bigger it grows the 
better it should be protected. But the United States has been 
growing and growing year after year, and its population has 
doubled since the Civil War, while our standing army has been 
kept nominally at 25,000 men, year after year. Even our present in- 
crease above 25,000 men is but temporary, as the law authorizing it expires on 
July 1, 1901, less than a year from now. 



EXPANSION OF THE UNITED STATES. 

The Democratic Party Has Always Favored Expansion — It 
Added Practically Every Foot of Territory, and Sought to 
Annex Cuba, Hawaii, the Danish West Indies, and Yucatan 
— Additional Slave Territory and Slave Power Was Their 
Ambition, and When Slavery Ended Their Interest in Ex- 
pansion Ceased. 

While the expansion Avhich has occurred under the McKinley 
Administration is now generally commended even by a large 
majority of those opposing the party in power, it may not be 
amiss to answer some of the criticisms of this policy which have 
been offered. 

It did not take long when this question came up for pub- 
lic discussion to bring to the surface the fact that 
Democrats who attempted to criticise the expansion pol- 
icy of the Republicans were at the same time criticis- 
ing the continuous policy of their own party during all of 
the veins in which it administered the affairs of the nation prior 



82 DEMOCRATIC EXPANSION. 

to the bj.rth of the Republican party. A few moments' reflection 
was suilieiei.it. to show that the enormous additions to our terri- 
tory, beginning with the Louisiana purchase by Jeffer- 
son in 1803, were accomplished by Democratic adminis- 
trations. The reply to this, however, was that the Democratic 
party's policy with reference to expansion had been only to add 
contiguous territory, while that which the Republicans were now 
adopting- contemplates the addition of non-contiguous territory 
— islands of the sea, which contaiu a population dissimilar to that 
of our own. 

Democrats Schemed for the Annexation of Cuba, Hawaii and 
Other Islands. 

The fact is — and a fact easily sustained by historical and offi- 
cial documents — that nearly every Democratic President from 
Jefferson to Buchanan expressed a, desire for the addition 
of Cuba to the territory of the United States, several 
of them hinting at a similar desire with reference to Porto 
Rico, and that at least one of them actively pressed for the 
annexation of the Hawaiian Islands to the United States, while 
schemes looking to the addition of non-contiguous territory in 
Central America and upon the Isthmus of Darien were favored 
by leading Democrats. 

Many Democratic Presidents "Wanted to Annex Cuba. 

Jefferson, both while President and afterwards, in corre- 
spondence with Madison and Monroe, frequently expressed 
a desire that Cuba should some time become a part of 
the United States, and the Democratic text book as late as 189S, 
issued as an ojjicial document of the Democratic party, quotes extracts 
from his letters in support of that statement. President Monroe also 
expressed himself in favor of making Cuba a part of the United 
States. Polk favored the annexation of Cuba, and fton. James 
I). Richardson, the present member of Congress from Tennessee, 
Avho now holds up his hands in holy horror at the thought of this 
kind of expansion, says in his index to the Messages and Papers 
of the Presidents, page 332, volume 10: 

President Polk made a proposition in 1840 for the purchase of the island 
by the American Government for $100,000,000. In 1834 the Ostend mani- 
festo claimed the right of the United States, should Spain refuse to sell 
Cuba, to take and annex it. 

The Ostend manifesto, it will be remembered, was an an- 
nouncement made by President Pierce's Minister to England. 
France and Spain (Buchanan, Madison and Soule), in which tney 
suggested that an earnest effort be made to purchase Cuba at a 
price not to exceed $120,000,000, and added that if this should be 
refused by Spain "we should be justified by every law, human 
and divine, in wresting it from Spain if we possess the power." 
a proposition of which Lossing, the historian, says: "The bald 
iniquity of this proposition amazed honest men in both hemi- 
spheres." 

Spain having refused to sell, and the sentiment of the 
world failing to sustain the Democratic proposition to 
seize the island, Pierce's Administration failed, but that 
of Buchanan immediately took it up again, and Pres- 
ident Buchanan, in three of his annual messages to 
Congress urged that Cuba ought to be made by purchase 
a part of the United States. During his term a bill for that 
purpose was introduced in Congress by Senator Slidell, whose 
name is well remembered in connection with the Confederate 
Government, and was sustained by Southern Democrats general- 
ly, while the same proposition for obtaining control of the island 
of Cuba by some process was publicly commended by Jefferson 
Davis in a speech in his own State during that time. The ef- 
forts of the various Democratic Presidents for the purchase of 
Cuba having been rejected by Spain, the Democratic national 
convention took up the question and in the platforms upon which 
tw T o of its candidates, Douglas and Breckinridge, ran in 1860 it 
declared pointedly in favor of the annexation of Cuba, as follows: 

Resolved, That the Democratic Party are in favor of the acquisition of 
the island, of Cuba upon such terms as shall be honorable to ourselves and 
jast to Spain. 



r~ DEMOCRATIC EXPANSION. 83 

Democratic Effort to Annex Hawaii. 

If is also on record that at least one Democratic 1' resident at- 
tempted to make Hawaii a part of the United States, although 
within the memory of the present generation a Democratic Pres- 
ident hauled down the United States flag in that island and with- 
drew from the Senate a treaty of annexation which a Republican 
President had sent to that body. Under President Pierce an ac- 
tive effort was made to annex Hawaii, and probably would have 
been successful but for the death of the King- after the treaty of 
annexation had been prepared and forwarded to the United 
States. It is a matter of official record in the State Department 
that negotiations Avere opened by President Pierce, through his 
Secretary of State, Marcy, and the Minister to the Hawaiian 
Islands, David L. Gregg, for the annexation of Hawaii; that a 
treaty for that purpose was drawn and forwarded to the United 
States in 1854, and that while President Pierce objected to certain 
of its features, his Secretary of State responded to Minister Gregg 
that— 

This (Jovermnent will receive the trarisfW of the sovereignty of the 
Sandwich Islands with all proper provisions relative to existing rights 
of the people thereof, such as are usual and proper to territorial sover- 
eignty. The President directs me to say that he can not approve of some 
of the articles of the treaty; there are in his mind strong objections to 
the immediate incorporation of the islands In their present condition into 
the Union as an independent State. It was expected that the Hawaiian 
Government would be willing to offer the islands to the United States 
as a Territory and leave the question in relation to their becoming a 
State to the determination of this Government, unembarrassed by stipu- 
lations on that point. * * * The President desires me to assure you 
that he takes no exception whatever to your course in this difficult and 
embarrassing negotiation, but, on the contrary, it is highly approved. 
Your efforts have been properly directed and your ability is appreciated 
and commended. 

Id addition to the above evidence of Democratic efforts to add 
island territory to that of the United States, a part of it thou- 
sands of miles away, it may be further remarked that President 
Polk in a message to Congress, on April 29, 1848, intimated 
strongly a desire to send troops to Yucatan and take possession 
of that territory, suggesting that this might be advisable in order 
to prevent that territory from falling into the hands of a Euro- 
pean power, while President Johnson, after severing his alle- 
giance to the Kepublican party and receiving the support of the 
Democrats, recommended, in a message to Congress, the pur- 
chase of the Danish West Indies. 



JEFFERSON AND IMPERIALISM. 
[By Hon. D. H. Watson.] 

The Consent of the Governed and National Expansion Under 
Democracy. 

The Democratic party asks by what authority the national ad- 
ministration transferred the allegiance of the Filipinos from 
Spain to the United States, and by what law it governs them 
Without their consent. By authority of American history and 
American law — history made by the Democratic party, and linv 
passed by a Democratic Congress. A more unfortunate question 
for the Democrats could not have been asked. Its answer ex- 
poses their ignorance of our political history, shows the hypoc- 
risy of their pretensions, and proves their present position on 
the subject of expansion, to be contradicted by the most vener- 
ated precedents of their party. 

Their first and greatest President made his administration 
famous and glorious by acquiring foreign territory and holding 
and governing it without asking the consent of the inhabitants 
thereof. By a treaty made on the 30th of April, 1803, between 
the United States and France, Mr. Jefferson purchased the terri- 
tory of Louisiana from Napoleon who had negotiated for its pur- 
chase from Spain. On learning that Napoleon had sold the ter- 
ritory to the United States, Spain protested against its oceupaney 
by our government, on the grounds that France had not com- 
plied will) the conditions of sale, had never taken possession of 
the territory, and had agreed to always retain the title in herself, 



84 JEFFERSON'S "IMPERIALISM." 

and therefore could not sell to us, and formally notified our gov- 
ernment not to attempt to take possession thereof. This attitude 
on the part of Spain caused Jefferson to convene Congress in 
extra session on the 17th of October, 1803, on which day he trans- 
mitted to that body his message, stating that "the property and 
sovereignty of all Louisiana have on certain conditions been 
transferred to the United States, by instruments bearing date the 
30th of April last." The message also set forth the terms and 
conditions of the purchase. The price paid was $11,250,000, and 
the assumption by the United States of claims due American 
citizens from France amounting to $3,750,000, making the total 
purchase-price paid by the United States $15,000,000. Under the 
provisions of the treaty the vessels of Spain and France were to 
have access to the ports of Louisiana for a period of twelve j'ears 
on the same terms as American ships, but this right was not to 
be given the ships of any other nation. The territory was to be 
admitted as a State into the Federal Union according to the pro- 
visions of the Constitution. Three days after receiving the 
message of the President the Senate ratified the treaty by a vote 
of twenty-four to seven. In the House the vote on ratifying the 
treaty was ninety to twenty-five. Doubtless it was the defiant 
spirit of Spain, as manifested in her protest and notice, which 
influenced Congress to act so quickly and emphatically, for, on 
the 31st day of October— fourteen days after receiving the Presi- 
dent's message— an act was passed declaring "that the President 
of the United States is authorized to take possession of and oc- 
cupy the territory ceded by France to the United States by the 
treaty concluded at Paris on the 30th of April, last, between the 
two nations; that he may, for that purpose, and in order to main- 
tain in the said territory the authority of the United States, em- 
ploy any part of the army and navy of the United States which 
he may deem necessary." 

In pursuance of the power conferred by this statute, the 
American authorities on the 20th of December following — eight 
months after the signing of the treaty and less than sixty days 
after the passage of the act aforesaid — by raising the stars and 
stripes at New Orleans, formally took possession of the entire 
territory, which embraced an area of more than six hundred and 
seventy millions of acres and more than a million square miles 
and from which twelve gi;eat States, reaching from the Gulf of 
Mexico to British Columbia, have been taken and are now mem- 
bers of the Federal Union. 

As the emblem of American liberty and progress floated for the 
first time over new and acquired territory as the result of the 
policy of American expansion, thus early established, who stop- 
ped to ask for the consent of the governed? Who consulted the 
inhabitants of this hitherto foreign domain to ascertain their 
willingness to have their allegiance transferred to the United 
States? Not Mr. Jefferson. Not a Democratic Congress. The 
author of the famous expression in the Declaration of Independ- 
ence, that "governments derive their just powers from the con- 
sent of the governed," was the first American President to 
acquire and govern territory without asking the consent of the 
governed, and, as the inhabitants of such acquired territory said, 
"without permitting them any agency in the events which an- 
nexed their country to the United States." The Democratic party 
must abandon Jefferson or they must abandon their present 
position on the subject of expansion. History is against them; 
precedent is against them; Jefferson is against them. 

There Were "Anti-Imperialists" Then, as Now. 

Soon after Jefferson took possession of the territory of Louis- 
iana, duly appointed and authorized representatives of its in- 
habitants presented to the Senate of the United States an able 
and formal remonstrance against the political system adopted by 
Congress for their government. Protesting against the form of 
government which had been provided for them, the remonstrance 
said, "A single magistrate, vested with civil and military, with 
executive and judiciary powers, upon whose laws we have had no 
check, over whose acts we had no control, and from whose de- 



JEFFERSON'S "IMEPRIALISM." 85 

crees there is no appeal; the sudden suspension of all those forms 
to which we had been accustomed; the total want of any per- 
manent system to replace them; the introduction of a new lan- 
guage into the administration of justice; the perplexing- neces- 
sity of using* an interpreter for every communication with the 
officers placed over us; the involuntary errors, of necessity com- 
mitted by judges uncertain by what code they are to decide, 
wavering between the civil and the common .law, between the 
forms of the French, Spanish, and American jurisprudence, and 
with the best intentions unable to expound laws of which they 
are ignorant, or to acquire them in a language they do not under- 
stand. These were not slight inconveniences, nor was this state 
of things calculated to give favorable impression or realize the 
hopes we entertained; but we submitted with resignation, be- 
cause we thought it the effect of necessity; we submitted with 
patience, though its duration was longer than we had been 
taught to expect; we submitted even with cheerfulness, while we 
supposed your honorable body was emploj'ed in reducing this 
chaos to order, and calling a system of harmony from the depth 
of this confused, discordant mass. 

After quoting some of the laws passed by Congress for their 
government and which were obnoxious to their people, the re- 
monstrance continues, "This is the summary of our constitution; 
this is so far the accomplishment of a treaty engagement to 'in- 
corporate us i n to the Union and admit us to all the rights, ad- 
vantages, and immunities of American citizens.' And this is the 
promise performed, which was made by our first magistrate in 
your name, ' that you would receive us as brothers, and hasten 
to extend to us a participation in those invaluable rights which 
had formed the basis of your unexampled prosperity.' " 

"Ignorant as we have been represented of our natural rights, 
shall we be called on to show that this Government is inconsist- 
ent with every principle of civil liberty?" 

"Uninformed as we are supposed to be of our acquired rights, 
is it necessary for us to demonstrate that this act does not 'in- 
corporate us into the Union,' that it vests us with none of the 
'rights,' gives us no advantages, and deprives us of all the 'im- 
munities' of American citizens." * * * 

"A Governor is to be placed over us whom we have not chosen, 
whom we do not even know, who may be ignorant of our lan- 
guage, uninformed of our institutions, and who may have no 
connection with our country, or interest in its welfare." * * * 

"Taxation without representation, an obligation to obey laws 
without any voice in their formation, the undue influence of the 
executive upon legislative proceedings, and a dependent judici- 
ary, formed, we believe, very prominent articles in the list of 
grievances complained of by the United States, at the commence- 
ment of their glorious contest for freedom. The opposition to 
them, even by force, was deemed meritorious and patriotic, and 
the rights on which that opposition was founded were termed 
fundamental, indefeasible, self-evident, and eternal. * * * * 
These were the sentiments of your predecessors; were they 
wrong? Were the patriots who composed your councils mistaken 
n their political principles? No, they were not wrong!" 

"Are truths, then, so well founded, so universally acknowl- 
edged, inapplicable only to us. Do political axioms on the At- 
lantic become problems when transferred to the shores of the 
Mississippi? or are the unfortunate inhabitants of these regions 
the only people who are excluded from those equal rights ac- 
knowledged in your Declaration of Independence, repeated in the 
different State constitutions, and ratified by that of which we 
claim to be a member?" 

After enumerating additional reasons for protesting against 
the conduct of Mr. Jefferson's administration, the remonstrance 
continues, "We may then again become the victims of false in- 
formation, of hasty remark, of prejudiced opinion; we may then 
again be told that we are incapable of managing our own con- 
cerns, that the period of emancipation is not yet arrived, and 
that when, in the school of slavery, we have learned how to he free, 
our rights shall he restored" * * * "Without any vote in the 
election of our Legislature, without any check upon our execu- 



SG JEFFERSON'S "IMPERIALISM." 

live, without any oik- incident of self-government, what valuable 
"privilege" of citizenship is allowed us, what 'right' do we enjoy, 
of what 'immunity' can we boast, except, indeed, the degrading 
exemption from the cares of legislation, and the burden of pub- 
lic affairs." 

This able and dignified remonstrance was followed on the 4th 
of January, 1805, by "a remonstrance and petition of the repre- 
sentatives elected by the freemen of their respective districts in 
the District of Louisiana," and addressed to the Senate and 
House of Eepresentatives of the United States, protesting against 
the act of March 25, 1804, erecting Louisiana into two territories 
and providing for the government thereof. The remonstrance 
and petition say, '^Yhile we were indulging fond expectations, 
unmixed with distrust or fear, the act of the last session of your 
honorable Houses came to our knowledge, and snatched from our 
eager grasp the anticipated good. The dictates of a foreign 
government! an incalculable accession of savage hordes to be 
vomited on our borders! an entire privation of some of the 
dearest rights enjoyed by freemen! These are the leading fea- 
tures of that political system which you have devised for us; for 
those very men who in a solemn treaty you had stipulated to call 
and treat as fellow-citizens; yet the American colors are hoisted 
in our garrisons, this far-famed signal of liberty to all, to us 
alone exhibits a gloomy appearance, and make us more sensible 
of the immeasurable interval between us and political happiness. 
May we not long be doomed, like the prisoners of Venice, to read 
the word liberty on the walls of prisons." * * * Referring to 
the protection which the act provided for the lives and property 
of the inhabitants of the territory, the remonstrance says, "Had 
the United States bound themselves to exterminate from the face 
of the earth every inhabitant of Louisiana, your petitioners do 
not conceive, that they could have taken a more effectual step 
towards the fulfilment, of the engagement, than the measures 
contemplated by the Fifteenth Section of the law, respecting the 
District of Louisiana. But by the treaty with the French Re- 
public, the United States have engaged to maintain and protect 
us in the free enjoyment of our liberty and property. Great God! 
a colony of Indians to maintain and protect ns in our liberties 
and properties. * * * In the meantime, depredations and 
assassinations bj r the Indians have already begun. * * * What 
a time have your honorable Houses chosen for the exchange in 
contemplation! A plan, wearing the most threatening aspect to 
our lives and properties — a plan not only alarming in its im- 
mediate effects, but pregnant with evils of a most dangerous 
nature in its remote consequences." 

The remonstrance concludes: "Your petitioners have thus gone 
through the painful, yet they conceive indispensable task of re- 
monstrating against grievances, in compliance with the duty 
they owed to their country, to themselves and to posterity. * * 
But let your honorable Houses remember that your petitioners 
feel themselves injured, deeply injured. Could they tamely sub- 
mit, could they even represent with more moderation in such a 
case, you yourselves would not consider them worthy to be ad- 
mitted into a portion of the inheritance of the heroes who fought 
and bled for the independence of America." 

Jefferson and His Congress Disregarded the Cry of 
"Imperialism." 

Notwithstanding these protests, as dignified and eloquent as 
were ever written, from a people who believed their natural and 
political liberties were disregarded and trampled upon, Jefferson 
and Congress passed them by unheeded, and governed the ter- 
ritory of Louisiana by laws more harsh and severe than any that 
have since been enacted by the American Congress. Less than 
thirty years after he wrote the Declaration of Independence, 
which glowed with the warmth and fire of personal and national 
liberty, Jefferson w r as pressing to the verge of civil and political 
desperation more than ninety thousand people (including slaves) 
who had been separated from their original sovci-eignty and an- 
nexed as citizens to the United States without being consulted 



JEFFERSON'S "IMPERIALISM." 87 

ami who were governed by men unfamiliar with their language, 
customs and laws. 

There can be no doubt that if there had been armed resistance 
to the occupancy of the territory by the United States on the part 
of the inhabitants, or of Spain, Jefferson would have met and 
overcome it by military force, for in addition to the troops which 
were at Xew Orleans when the flag was raised, he had concen- 
trated large bodies of soldiers at other points ready for action 
in case of necessity, in pursuance of the authority conferred 
upon hini by the act of October 31, 1803. 

This was the first time our government acquired foreign terri- 
tory, and the acquisition constituted an epoch in our political 
history. The situation required wisdom and statesmanship, but 
Jefferson met the emergency of the hour by adopting and ex- 
ecuting a policy which he thought the welfare of his country de- 
manded and which he hoped the future of his country would 
justify. His judgment was wise and his predictions and hopes 
correct. The acquisition of this territory was not the result of 
war. It did not come by right of conquest or by international 
conflict as a reward to the conqueror. It was a plain purchase, a 
bargain and sale entered into between two sovereign nations. 
Jefferson saw that foreign ownership of the territory in question 
and the consequent contr. »1 of the Mississippi would stand as 
barriers in the pathway of our national progress and that the 
acquisition of this territory by the United States would be of 
inestimable benefit to our young republic. In such a moment he 
did not hesitate to act. It was argued by the few who opposed 
the policy of annexation that there was no constitutional au- 
thority for such a course, but in the face of all objections — the 
same then as now — Jefferson paid the price and took the title 
without consulting - any other nation or the inhabitants of the 
territory. Nothing in all his administration reflects so much to 
his credit and resulted so beneficially to the future prosperity oi 
his country as securing the vast area of territory known as the 
Louisiana purchase. Every generation since the annexation has 
seen the wisdom of his course and rejoiced in its success. Not to 
have acquired Louisiana then might have been fatal to our na- 
tional growth, and instead of an empire stretching to the Pacific 
Ocean, we might have been limited in our western boundary by 
the line of the Mississippi. When he acquired the Louisiana ter- 
ritory Jefferson touched the world as he never had before, ami 
paved the way for American progress, civilization and supremacy 
in a domain vaster in area than most of the nations of the world. 
Why should his example in the acquisition of national territory 
now be ignored for the first time? And why should those who 
worship Jefferson as the god of Democracy, denounce in 1900 
what they approved of his doing in 1503? 

Other Democratic "Imperialists." 
The Floridas. — The example of Jefferson in annexing Louisiana 
was followed by many of his successors in the Presidential office. 
In 1S19 President Monroe secured the Floridas by a treaty with 
Spain, and thereby added nearly seventy thousand square miles 
to our domain at a cost of $5,000,000. 

Texas. — The Republic of Texas secured its independence from 
Mexico in 1S36 and in the following year made an effort to be 
annexed to the United States, but the attempt failed. Another 
effort was made in 1844, which was also unsuccessful, but the 
movement for annexation met with popular favor and formed a 
leading issue in the Presidential campaign of 1844, the deim - 
cratic candidate, Mr. Polk, being strongly in favor of it and his 
election was regarded as evidence that the public mind- approved 
of the project. In 1846 a joint resolution providing for the ad- 
mission of Texas as a state in the Federal Union passed both 
Houses of Congress and the annexation was secured. The con- 
trolling spirit in the plan for annexation was John C. Calhoun, 
who was Secretary of State in President Tyler's cabinet. When 
speaking on the subject as a member of the Senate in 1847, two 
years after the annexation, he said, "I selected the resolution of 
the House * * * because I clearly saw that it was the only 
certain mode by which annexation could be effected." 



8S DEMOCRATIC "IMPERIALISM." 

It was the first time that foreign territory had been annexed 
to the United States except by international treaty, and 
it had always been considered that annexation could be 
accomplished in no other way. But by the passage of 
a simple resolution Congress added an area of more 
than three hundred and seventy thousand square miles to the 
United States. A foreign republic had been admitted to mem- 
bership in the Union as a State without passing through the 
experience of a territory or sustaining any former relationship 
to our government. Snch an act had never occurred before and 
has never occurred since. It was the most extreme position on 
the subject of annexation ever taken by any American statesman 
or any political party, but it w 7 as planned and carried out by the 
leaders of democracy and was a policy in direct conflict with 
their recent party declaration. The Democrats must abandon 
their party history or their party platform. As to the resolution, 
admitting a foreign government as a member of our Federal 
Union passed Congress, who stopped to ask about the constitu- 
tionality of such an act? Not President Tyler, not President 
Monroe, not John C. Calhoun, not a democratic Congress. Where 
then was the doctrine of the strict construction of the constitu- 
tion Calhoun had contended for in the Senate with such master- 
ful ability? It had been abandoned by that crafty statesman and 
his followers, and under his dictation a foreign government was 
made a State in the American Union by a simple resolution of 
a democratic American Congress. 

California and other States. — By the treaty of Guadaloupe 
Hidalgo between the United States and Mexico in 1848, at the 
close of the Mexican war, the United States acquired an area of 
territory of more than five hundred thousand square miles, from 
which the States of California, Colorado, Nevada. Utah and parts of 
the territories of New Mexico and Arizona have been formed. 

Gadsden Purchase. — The treaty of 1848 between Mexico and the 
United States, so far as it concerned a portion of the boundary 
line having been differently construed by the two countries, 
threatened to result in international complications, but through 
the efforts of General James Gadsden, the American Minister to 
Mexico in 1853, was amicably settled by treaty between the two 
governments which resulted in the United States purchasing 
from Mexico an area of territory embracing about forty -five thou- 
sand square miles and which now constitutes the southern por- 
ion of Arizona and New Mexico. 

"Consent of the Governed" not Considered in Any of the Demo- 
cratic Expansion Acts. 

These five annexations, beginning with that of Louisiana ter- 
ritory in 1803 and ending with the Gadsden annexation in 1853, 
all occurred while every branch of the Federal Government was 
in control of the Democratic party. Louisiana was annexed 
under Jefferson, the Floridas under Monroe, Texas under Tyler, 
California, Colorado, Nevada, Utah, part of New Mexico and 
Arizona under Polk, and the territory covered by the Gadsden 
purchase under Pierce. In a period of just fifty years that party 
added to our national domain by annexation more than two mil- 
lion one hundred and ninety-eight thousand square miles of 
territory embracing an area of more than one billion four hun- 
dred and thirty-seven million acres, at a cost of fortj'-five million 
dollars. 

At no time during the pendency \of the negotiations wMch resulted in these an- 
nexations, was it suggested by any one on behalf of the United Skdes that the 
consent of the inhabitants of the ceded territory should be secured in behalf of 
the annexation. Except in the case of Texas, in each instance annexation was 
the result of international treaty, and international treaties do not stop to ask 
the consent of the inhabitants who may reside in the ceded territory, that the 
negotiations may be consummated. 

With this history in favor of national annexation before them, 
history which they made and of which they may be justly proud, 
it is difficult to understand how and why the democratic party 
now opposes a policy similar in so many respects to the one they 
so long advocated and because of which they gained so much 
party prestige and national glory. 






DEMOCRATIC "IMPERIALISM." 89 



DEMOCRATIC "IMPERIALISM" IN HISTORY. 

It may be further added that the military operations in the 
Philippines are solely for the suppression of the insurrection 
which followed American occupation, and following- the methods 
laid down by Gen. Jackson in Florida, when he waged war 
against the independence of that section after the transfer of 
the territory to the United States by Spain, and also following 
the precedent established in New Mexico by President Polk's 
administration, where the conquest was originally accomplished 
by military force in the campaign of 1846, and an insurrection 
which took place in the following January was suppressed by 
military forces. On that occasion there were many serious and 
sanguinary engagements between the United States forces and 
the insurgents, the hostilities continuing during nearly all of 
the year 1847. These events resulted in an inquiry by Congress, 
and in reply President Polk sent a message fully justifying the 
action of the military authorities and taking the broad position 
that the military government was a proper one and that it 
had the fullest rights of sovereignty. Other records sent* to 
Congress in reply to an inquiry on this subject in June of the 
present year show that a similar course of action was followed 
in suppressing an insurrection in California in 1848, and re- 
establishing the sovereignty of the United States there. 

Regarding the suggestion that the administration of govern- 
ment under these circumstances should only be by complete 
"consent of the governed," it has been shown that while all 
of the territory west of the Mississippi was added from time to 
time by Democratic administrations in no case was the consent 
of the inhabitants taken into consideration except in the case 
of Texas, where Americans had settled in the territory for the 
express purpose of bringing it into the United States, and even 
there only a part of the population favored annexation. In the 
case of Cuba, for whose control every Democratic President from 
1840 down planned and plotted. Democratic conventions in 1860 
adopting resolutions favoring its annexation, no word of sug- 
gestion was made that the proposed annexation should depend 
upon the consent of the people of the island or that their wishes 
should be taken into consideration. Tn 1854 a Democratic Presi- 
dent (Pierce) planned the annexalion Of Hawaii and proceeded 
so far as to frame a treaty of annexation without submitting 
the question to the wishes of any save the King and a few of 
his immediate advisors. (For details see pages 2301, 6999 and 7674 
of "Pages from Congressional Record.") 



DEMOCRATIC CONTROL OF NEWLY ADDED TERRITORY. 

The Use of Troops to Suppress Insurrection is Not a New 
Thing in Our History — Democratic Record of Suppression 
of an Insurrection in New Mexico in 1847 by Use of the 
Military Forces of the United States. 

Little by little it becomes apparent that the Democratic crit- 
icism of the methods of the present Administration in regard to 
newly acquired territory is a criticism of the methods followed 
by its own leaders and Presidents, It has been already shown 
that all of the vast territory added to the area of the original 
thirteen States was added under Democratic control, also that 
the leaders of the party in and out of office planned and plotted 
and schemed to add the islands of Cuba and Hawaii as long as a 
desire for more slave territory stimulated them to activity. 



90 DEMOCRATIC "IMrEUIALlSM.' 



Democratic Votes Ratified the Treaty and Authorized the Sup- 
pression of the Philippine Insurrection. 

Driven from, their former positions by these developments, they 
now undertake to criticise the fact that the President is using- 
the army to put down the insurrection in the Philippines, not- 
withstanding- the fact that the treaty with Spain was ratified by 
Democratic votes after that insurrection had been begun. It 
seems hardly credible that men could attack the President for 
carrying to a finish a war that was in existence when the pur- 
chase of the islands was authorized by their own party leaders. 
Yet such is the fact. The attack of the Filipino forces upon our 
troops in the Philippines begun on February 4, 1S99, and on that 
same night Aguinaldo issued his proclamation declaring war 
against the United States. Yet it was not until February 6, two 
days after, that the treaty was ratified, and that by 10 Demo- 
cratic and % Populist and Silver party votes. The statement has 
also been repeatedly made that some of these votes were cast 
for the treaty by the "advice and consent" of William Jennings 
Pryan, and he himself so indicates in his speech to the Notifica- 
tion Committee, delivered at Indianapolis, Aug. 8th, 1900. 

By this action the leaders of the Democratic and Populist par- 
ties deliberately bougiit an insurrection already going- on, agree- 
ing- that the United States should pay $20,000,000 for the islands 
where it existed, and in so doing placed upon the shoulders of 
President McKinley the duty of suppressing* it. He could not 
do otherwise. Yet they are criticising his course, though of 
course it is well understood that the criticism is for politic;: I 
effect only. 



DEMOCRATIC "IMPERIALISM" IN NEW MEXICO. 

Now, to show that the leaders of the Democratic party did in 
another similar case just what President McKinley is now do- 
ing, and did it by the direction of a Democratic President. Some 
papers just compiled by the War Department show that after the 
conquest of New Mexico by the military forces of the United 
States was accomplished .by the campaign of 1S46, General Kear- 
ny, the officer in command, organized a civil government for the 
occurned territory, and filled the executive and judicial offices by 
appointment. These civil functionaries entered upon the dis- 
charge of their duties in apparent unconsciousness of exposure 
to more than ordinary peril. In December, 1846, the native in- 
habitants organized a conspiracy to overthrow the United States 
authority in New Mexico. On the nigiit of January 15, 1847, the 
governor, the sheriff, the circuit attorney, the prefect, and a 
number of others, citizens and officials of the United States, and 
Mexican supporters of United States authority, were assassinated 
in the town of San Fernando de Tayos. On the same nig-ht seven 
other Americans were killed at Arroyo Hondo and two at Pio 
Colorado. It was then apparent that the insurrection w T as gen- 
eral, and the purpose was to kill all the Americans and those 
Mexicans who had accepted office under the American Govern- 
ment. 

Colonel Sterling Price was then commander of the army of 
New Mexico, with headquarters at Santa Fe. He learned of the 
uprising and attendant atrocities January 20, 1S47. and that the 
army of insurrection was marching against Santa Fe. He took 
prompt and vigorous action and marched out to meet the insur- 
gents with a force of about 400 men. There were many serious 
and sanguinary engag-ements, but the enemy was no sooner dis- 
lodged from one position than it took refuge in another, and 
maintained a determined resistance throughout. The losses were 
heavy on both sides. Owing to the mountainous character of the 
country, and the fact that the campaign took place in the winter 
time, the American forces suffered many hardships before reach- 
ing- the town of San Fernando de fayos, where the governor and 
pail,\ had been foully assassinated. A particularly severe en- 
gagement occurred at the near-by town of Pueblo de Tayos, 



DEMOCRATIC "IMPERIALISM." 91 

which had been strongly fortified. The insurgents took position 
in a large church which they had pierced with embrasures for 
rifles. The Americans battered the church and walls for two 
hours without effect, and were compelled to retreat to Fernando. 

The following" day they returned and renewed the assault, but 
the artillery fire seemed to have no effect upon the church walls. 
Ladders wei'e then made and holes cut in the walls with axes, 
through which the soldiers with their hands threw fire and light- 
ed shells into the interior. Another assault was made on the 
church door, which again failed, with loss. The artillery was 
then brought up to within GO yards, and after ten rounds had 
been fired one of the holes which had been cut with the axes 
was widened to a practicable breach, through which a storming 
party entered, dislodged the enemy, and took possession of the 
church. The next morning the enemy surrendered. The loss 
sustained by them was about 150 killed. The number of wound- 
ed was not known. The American loss in killed and wounded 
was 52. 

Under date of January 23, Captain Hendle}', commanding at 
Vegas, N. Mex., reported to Colonel Price that every town and 
village, except Vegas and Tucoloti, had declared in favor of in- 
surrection, and that the entire population seemed ripe for it. 
The insurrection in eastern New Mexico was inaugurated by tin" 
murder of eight Americans at Mora Januarj- 20, 1847, and was 
continued in force until the following July, having been marked 
with many atrocities on the part of the insurgents. Thereafter 
the insurrection dwindled into depredations committed by va- 
rious bands of Indians instigated and led by Mexicans. 

Hardly a party, large or small, traders or soldiers, crossed (he 
plains of New Mexico without being attacked. Many men were 
killed and large numbers of horses, mules and cattle driven otV. 
In the latter part of 1847 comparative safety was secured i»\ 
stationing the troops at various points. Of the insurgent prison- 
ers, fifteen or twenty were executed by sentence of court -man iaJ. 
The others were turned over to the civil authorities. 

President Polk Sustained the Military Authorities in New 

Mexico. 

The events resulting from the insurreet ion did not escape the 
attention of Congress. That body on July 10, 1848, passed a. res- 
olution calling upon the President tor information in regard to 
the 'existence of civil government in New Mexieo and California, 
their form and character, by whom instituted and by what au- 
thority and how they were maintained and supported; also 
whether any persons had been tried and condemned for "treason 
against the United States" in New Mexico. President Polk replied 
to said resolution in a message dated July 24, 1848, in which he 
discussed the character of military government, taking the broad 
position that such a government may exercise "the fullest rights 
of sovereignty," thereby explaining the action of the military au- 
thorities in suppressing the insurrections. 

The records show that a similar course of action was followed 
in suppressing the insurrection in California in 1848, and re- 
establishing the sovereignty of the United States. 



REPUBLICAN COMMERCIAL EXPANSION CONTRASTED 
WITH DEMOCRATIC SLAVERY EXPANSION. 

The Republican view of expansion differs widely from that 
which controlled the Democrats in their ambitions for adding ter- 
ritory, and especially tropical territory. "Wlhat they desired, es- 
pecially in the case of Cuba, was additional slave territory and 
additional power in Congress through increased number of slave 
States. The Republican view of expansion is to secure foot- 
holds by which our commerce will be protected and extended. 
The territory which has come under the control of the Govern- 
ment in the Gulf of Mexico is of supreme importance in guard- 
ing that approach to the mouth of the Mississippi River and a 
great isthmian canal, which the Republican party is pledged 
to bring inlo existenee, and a Li 1 1 for which has already passed 



92 EXPANSION OF OUR MARKETS. 

the House of Representatives. The Hawaiian and Samoan Is- 
lands are of equal importance in relation to the commerce of 
that great Pacific Ocean which is attracting so much atten- 
tion. The Hawaiian Islands form th only way station and 
satisfactory harbors in the central Pacific, while' the harbor of 
Tutuila in the Samoan group, which has recently become a part 
of the tainted States, is recognized as the finest in the southern 
Pacific, and probably the finest in the entire Pacific Ocean. 

Trade in the Orient. 

With these two islands as way stations for coaling, watering, 
repairing, and receiving telegraphic orders vessels can satisfac- 
torily engage in commerce between the United States and the 
Orient, and by making the Philippine Islands a great entrepot 
for American products, can command the trade of the Orient as 
Great Britain commanded it in former years, and much more 
successfully than she now does by reason of greater proximity 
and greater facilities for producing articles which the people 
of that country desire. The countries lying within easy reach of 
Manila as a point of distribution — China, Japan, Asiatic Russia, 
French Indo-China, Siam, India and Australasia — contain half 
the population of the earth and have an annual commerce of 
more than $2,000,000,000. Their purchases alone amount to nearly 
$1,200,000,000 annually, or an average of about $100,000,000 per 
month, and at the present time the United States supplies but 6 
per cent of their purchases. Yet their wants include all the arti- 
cles which we have to sell. Not only is this the case, but they are 
rapidly coming to recognize the fact that they can obtain more 
satisfactorily from the United States the ariicles they desire than 
from any other part of the world. American flour, provisions, 
tobacco, cotton and cotton goods, and manufactures of all kinds 
are rapidly making their way into the Orient and are as rapidly 
excluding those which the European countries have been suppty- 
ing them. 

Our exports to Japan have increased from $5,275,501 in 1889 to 
$29,087,642 in the fiscal vear 1900; to China, from $3,254,034 in 
1889 to $15,258,748 in 1900; to Hongkong, from $3,864,224 in 1889 
to $8,485,988 in 1900; to British Australasia, from $7,576,890 in 
1893 to $26,725,702 in 1900; and to all Asia, from $21,534,847 in 18S9 
to $64,913,984 in 1900; and to all Oceania, from $16,081,021 in 18S9 
to $43,390,927 in 1900. Even with this rate of increase we are, as 
already indicated, supplying but about 6 per cent of the total 
purchases of that enormous population grouped around Manila 
as an entrepot and point of distribution for our merchants and 
manufacturers. 

Trade with Cuba, Porto Rico, Hawaii and the Philippines. 

To the islands with which we have come in closer relations 
during the last two years our exports show a rapid growth. To 
Porto Ptico the exports of 1900 were $4,640,431, against $1,955,814 
in 189G; to Cuba in 1900, $26,513,613, against $7,296,613 in 1896; 
to the Hawaiian Islands in 1900, $13,509,138, against $4,184,351 in 
1896, and to the Philippine Islands $2,640,449 in 1900, against 
$69,459 in 1897, an increase of nearly 200 per cent, in the total 
to the four island divisions. 

This opportunity for expansion affects every producer, every 
individual engaged in any form of agriculture, in mining, in 
manufacturing, in transportation, and in commerce. The people 
of the Orient demand flour, meats and dairy products, cotton and 
cotton goods, and manufactures of all kinds, and they have 
clearly shown in recent years a preference for the products of 
the United States, a preference which will give us a large share 
of their enormous market, with the control of Hawaii and Manila, 
the opening of the Nicaraguan Canal, and the establishment of 
American shipping with which to carry American products. 



That flag is there, not as the symbol of oppression, not as 
the flag of tyranny; but it is there, as it is everywhere, the 
symbol of liberty, civilization, hope, and humanity. — Presi- 
dent McKinley at Sioux Falls, S. D., Oct. 14, 1899. 



THE SILVER QUESTION. 

All the Dangers of 1896 Repeated in 1900— The Election of 
Bryan Would Mean Free Coinage of Silver, Willi All Its 
Attendant Disasters. 

However much the skeleton of Free Silver may try to con- 
ceal its identity behind the mask of "Imperialism," no' thought- 
ful man can doubt, upon a moment's reflection, that all of the 
dangers of 189G again threaten our financial system in the cam- 
paign of 1900. The chief issue in the Democratic Convention 
in 1900 was the free coinage of silver, as was the case in 1896; 
the men who insisted upon it in 1890 insisted even more vio- 
lently in 1900 and Mr. Bryan emphasized his support of it in 
1900 by indicating that he would abandon his long cherished 
presidential ambitions rather than abandon a distinct declar- 
ation for silver in the 1900 platform; although the readoption of 
the platform of 1896 in fact reasserted this as well as all the 
other dangers of that declaration. 

The free and unlimited coinage of silver is again the real 
issue, and the election of Mr. Bryan would as surely mean the 
establishment of that system during his term as was the case 
in the election of 1896. The frequently heard suggestion that 
"the Republican party has settled the currency question, and 
we may therefore safely elect Mr. Bryan," seems too puerile 
to need serious reply, except that in some cases it seems to be 
seriously made. For that reason it is proper to show how 
surely the election of Mr. Bryan in 1900 would mean a control 
of the legislative bodies and the enactment into law of all the 
financial heresies which he advocated in 1896 and has since con- 
tinued to advocate at every opportunity. 



THE GOLD STANDARD IN DANGER. 

Is "the Financial Question Settled?" Some Plain Facts for 
the Friends of Sound Money to Consider. 

The argument that because the Republican party has given 
the United States a sound and satisfactory currency system 
it will now be safe to put the enemies of sound money in con- 
trol of the government seems too absurd to require answer, 
yet it is seriously urged by a few people and therefore re- 
quires serious consideration. 

A most dangerous and mistaken view is that taken by so many 
advocates of sound money who say and apparently believe 
that if the Demo-Populists should win the Presidency this 
year it would not be possible for them to repeal the Gold 
Standard law within the next four years, because the political 
complexion of the United States Senate could not be 
changed before the beginning of the Fifty-ninth Congress. A 
similar pernicious belief nearly cost the sound money men the 
control of the House of Representatives in the Congressional 
campaign of 1898. Such control was vital to the enactment of 
the existing financial law. The sound money men who, in 1898. 
idly rested on the laurels won in the Presidential campaign of 
1896 permitted the enemy to capture twenty-five Congressional 
seats in the States of New York, New Jersey, Pennsylvania, Mas- 
sachusetts, Maryland and West Virginia; and but for gains made 
in Kansas and other Western States would have gained control 
of that body and the Gold Standard law could not have been 
enacted. Apathy and over confidence brought the sound money 
cause so near the brink of disaster two years ago. 

To insure the safety of the financial legislation of last winter 
Mr. Bryan must be defeated in November. His election would 
be an unerring indication that the control of the United States 
Senate would pass into the hands of the foes of sound money on 
March 4, 1903, half-way through a Bryan Administration, and it 
would also indicate with less certainty such a disaster on March 
4, 1901, at the beginning of the Congress to be chosen this year. 
Moreover, the election of Mr. Bryan would also be the election 
of a House of Representatives a majority of whose members 
would be pledged to the repeal of the Gold Standard act a,nd to 
the enactment of a Free Coinage law. 

.Among the States which are to elect United States Senators 

93 



94 THE GOLD STANDARD IN DANGER. 

who will take their seats at the beginning of the Fifty-seventh 
Congress, on March 4, 1901, are the following-: 

Colorado — To succeed Walcott, Republican. 

Delaware — To succeed Kenney, Democrat, and also to fill a 
vacancy. 

Idaho — To succeed Shoup, Republican. 

Illinois — To succeed Cullom, Republican. 

Kansas — To succeed Baker, Republican. 

Minnesota. — To succeed Nelson, Republican. 

Montana -To succeed Carter, Republican, and Clark, Democrat. 

Nebraska — To succeed Thurston, Republican, and Allen, Demo- 
Populist. 

North Carolina — To succeed Butler, Populist. 

South Dakota — To succeed PettigTew, Silver Republican and 
Populist. 

West Virginia — To succeed Elkins, Republican. 

Wyoming — To succeed Warren, Republican. 

The present representation of these States in the United States 
Senate consists of fifteen Republicans, one Democrat and six 
Populists and Silver Republicans. Of these twelve States eight 
—Colorado, Idaho, Kansas, Montana, Nebraska, North Carolina, 
South Dakota, and Wyoming'— were carried by Bryan four years 
ago. If he is to be elected President this year there is at least 
a reasonable probability that he will carry two of the others — 
Delaware and West Virginia — and that the representation of the 
twelve States in the United States Senate at the beginning of 
the Fifty-seventh Congress will stand: Republicans, 8; opposi- 
tion, 16, as follows: 

REPUBLICANS. 

1 llinois 2 South Dakota . , 1 

Minnesota 2 W'est Virginia: 1 

North Carolina 1 Wyoming 1 

OPPOSITION. 

Colorado 2 Nebraska 2 

Delaware 2 North Carolina 1 

Idaho 2 South Dakota 1 

Kansas 2 West Virginia 1 

Montana 2 Wyoming 1 

The representation of the other thirty-three States in the Sen- 
ale will presumably be The same in the next Congress as in tin- 
present one — Republicans, 38; Opposition, 28 — and the Senate 
would then stand: Republicans (for gold standard), 40; (^po- 
sition (for silver standard), 44. The loss of a Republican Senator 
in a single one of the other Slates would divide the Senate- 
equally on March 4, 1901, and the vote of a Democratic Vice- 
President would give the silver element control of that body and 
power to repeal the gokl-standar act at once. 

It is reasonably certain that the election of Bryan as President 
this year would be followed by a Silver majority in the Senate 
in the Fifty-eighth Congress, which will begin March 4, liJU ,. 
Among' the Republican Senators whose terms will expire on 
March 3d of that year are the following: Perkins, of California; 
Mason, of Illinois; Fairbanks, of Indiana; Deboe, of Kentucky; 
Wellington, of Maryland; Piatt, of New York; Hansbrough, of 
North Dakota; Pritchard, of North Carolina; Foraker, of Ohio; 
and Kyle, of South Dakota. If Bryan shall win this year, at 
least three of these — Deboe, Wellington and Pritchard — will prob- 
ably be succeeded by Silver Senators, and the seats of several 
of the others will be in serious danger. 

It should not be forgotten, for example, that in Indiana only 
one Republican was elected to the United States Senate, and he 
for only a single term, between 1875 and 1897, and in that entire 
period of twenty-two years both Senatorships were held by 
Democrats with only one break of two years' duration. It has 
been only since March 4th of last year that both seats have been 
occupied by Republicans since Joseph E. McDonald, Democrat, 
was elected in 1875 to succeed Daniel D. Pratt, Republican. The 
election of Bryan to the Presidency this year would indicate a 
strong probability of the election of a Democrat to succeed 
Senator Fairbanks in 1903. 

From 18iq to 1897, a period of twenty-eight years, one of the 






TIMfl GOLD STANDARD IN DANGER. 



Ohio Senatorial seats was filled by a Democrat, and from 1879 
to 1881 both of them were so filled. It has been only since the 
beginning- of the McKinley Administration that both of them 
have been occupied by Republicans at the same time since the 
period of reconstruction. The seat of Senator Piatt, of New 
York, whose term will expire March 3, 1903, will also be in 
serious danger if Bryan shall be elected President this year. 
From 1891 to 1899 that State was represented in the United 
States Senate by one Democrat and one Republican for the other 
four years. 

In view of the foregoing facts it must appear to any un- 
prejudiced mind that in case of a Bryan victory this year the 
United States Senate could not be safely depended on to prevent 
the reversal of the existing financial law before the end of the 
Bryan Administration. And there would, indeed, be serious dan- 
ger of such a reversal in the first or second year of that Admin- 
istration. 

Could the new House of Representatives to be chosen in 190:? 
be safely depended on to prevent such a calamity? Undoubtedly 
not. All the probabilities would be against it. in the Inst thirteen 
Congressional elections the Democrats have won eight time*. 
If Bryan is elected this year the Demo-Populists will surely carry 
the House of Representatives also, and almost as certainly they 
will win in the Congressional elections of 1902, or, if not, the Re- 
publicans will have as narrow and uncertain a majority as they 
did in 1890, when the passage of the Senate Free Coinage bill by 
the House of Representatives was prevented with thegreatestdif- 
ficulty, and then only by the adoption of a compromise measure 
eulty, and then only by the adoption of a compromise measure 
which pleased nobody, which aggravated the evils flowing from 
an unstable system and which was repealed only after a bitter 
fight which rent the Democratic party in twain and drove the 
dominant faction of it into the Populist camp. And even if the 
sound money men should carry the House by a decisive majority 
in 1902 and the Silver men should obtain the ascendency in the 
Senate there would immediately follow a recurrence of the agi- 
tation of financial questions and policies which did the country 
so much harm for years prior and down to the enactment of 
the Gold Standard law of March 14, 1900. The only way to 
insure the continued stability of that legislation is to defeat the 
Bryan ticket in November and elect a Republican sound money 
majority in the next House of Representatives. 

The prevalent belief that "the financial question is settled for 
the next four years at least, even if Bryan is elected President" 
is not only a pernicious but a fallacious one, and cannot be too 
soon abandoned. 



INTERNATIONAL BIMETALLISM. 

The Republican party faithfully redeemed its pledges with ref- 
erence to international bimetallism, making every effort to bring 
about an international agreement which would enlarge the use of: 
silver as a money metal. A Republican Congress passed, even 
before the inauguration of President McKinley a resolution au- 
thorizing him to call an international conference or send a 
Commission to Europe for consultation upon this stibject, should 
he deem the latter the preferable method. Promptly after his 
inauguration he appointed a commission consisting of Hon. Ed- 
ward O. Wolcott, of the U. S. Senate; Hon. Adlai E. Stevenson. 
Vice President during' President Cleveland's first term and now 
Democratic candidate for Vice President, and General Charles 
J. Payne, as special envoys to France, Great Britain, and Ger- 
many, to discuss in concert with the Ambassadors in those coun- 
tries the question of an ag*reement for the establishment of bi- 
metallism. They visited France where they obtained the active 
support of the French embassy, but failed to obtain the active 
co-operation of the German Government, and on July 15, 1S97, 
laid before the British Government a proposition for interna- 
tional action upon the currency question. It proposed the open 
ing of the India mints to silver coin, a repeal of the drdeB wlriea 
made the sovereign legal tender in India, placing oue-fiftn of tie 
bullion in the issue department of the Bank of England in sil- 
ver, the raising of the legal tender Jimi( of silver coin \v EngDnd 
from 40 shillings to £20, together with the issue of yotes for 20 



% THE Kl'KOltT Full 1NTEHNAT.M >N AL BIMETALLISM. 

shillings and 10 shillings based on silver; and coupled with this 
an agreement to coin a certain amount of silver annually, the 
other nations to the proposed agreement" to also agree to the pur- 
chase of a certain amount of silver annually, the ratio agreed 
upon between the French and the American envoys being at the 
rate of 15% to 1. 

This proposition was taken under consideration by the British 
Government which, after several months of consideration, de- 
clined to enter upon the proposed arrangement, saying that the 
Government of India, to which the matter had been referred, 
could hardly be expected to give up the policy which for four 
years it had been endeavoring to make effective, which policy 
has since been completed by the establishment of the gold stand- 
ard in India. This failure to obtain the co-operation of any 
European Government except that of France rendered the pro- 
posed international action impracticable. 

In this connection it is proper to add that every effort which 
has been made in behalf of international bimetallism has been 
under, and by the Eepublican partj r . The international confer- 
ence of 1878 was called by President Hayes. The delegates were 
ex-Gov. Eeuben E. Fenton, of Sew York, Chairman; General 
Francis A. Walker, and Hon. W. S. Groesbeck, with S. Dana 
Horton, secretary of the delegation. All these except Mr. Groes- 
beck were Republicans. The delegates to the confereence of 1881, 
also appointed by President Haj^es, were Hon. Wm. M. Evarts, 
Hon. Allen G. Thurman, Hon. T. O. Howe, with S. Dana Horton 
again secretary. All of these delegates except Mr. Thurman 
were Republicans, though the Congress which passed the reso- 
lution authorizing their appointment was Democratic in both 
branches. The delegates from the United States to the monetary 
conference of 1892, held at Brussels, and the last of the series 
of international conference? upon this question, were also ap- 
pointed by a Republican Congress. The members of that com- 
mission were: Hon. W. B. Allison. Hon. John P. Jones, Hon. 
James B. McCreary, Hon. Henry W. Cannon, Prof. E. Benjamin 
Andrews, and Hon. Edward H. Terrell, the majority of this com- 
mission being also Republicans. 

Professed Silver Men Opposed the Creation of the Bimetallic 
Commission. 

On the other hand the men who have been loudest in their pro- 
fessions of friendship for silver were absolute obstructionists in 
the final effort made to bring about international bimetallism by 
the creation of the commission of 1897. When the bill for the 
appointment of a. commission came up in the Senate on January 
29, 1897, Senator Petti grew, who professed the warmest friend- 
ship for silver, said: "I wish to record my protest against the 
passage of this bill;" and proceeded to detail his reasons at con- 
siderable length. Senator Allen (Populist), a professed friend 
of silver, also presented on the same date a long argument to 
show that the effort would be unsuccessful, and said: "It is a 
useless thing, it is the work of supererogation." On the same 
day Senator Cannon (Silver Republican), after speaking of the 
movement as having an air of grotesqueness, said: "If we must 
fawi further at the feet of those who control the fi- 
nances of the world, let us at least preserve our self-respect 
when we are their hosts." On the same day Senator Jones, of 
Arkansas, Chairman of the Democratic National Committee, put 
himself on record on this subject by saying: "This scheme is 
not ours; we have not originated it; we do not believe it is 
the proper scheme for the solution of these difficulties." Wh,eu 
the bill came up in the House ou February 26, Congressman 
Hartman (Silver Republican), said: "We desire to register our 
unqualified detestation of the idea embodied in the declaration 
that we must have the consent of the leading commercial nations 
of the earth before we ea.u legislate for ourselves;'' while other 
Democrats and Silver supporters in that body also expressed 
a similar lack of confidence and unwillingness to cordially co- 
operate in the effort. None of the opponents of the proposition, 
however, offered any available plan other than that proposed 
1)\ the Democratic platform of 18§6 and again in 1900 — the im- 
mediate tree and unlimited coinage of silver by the United States 
at the ratio of 1G to 1, without reference to the action or atti- 
tude of any other nation. 



THE TRUE FRIENDS OF SILVER. 



No Other Nation or Party has dene or is doing as much on 
Behalf of Silver. 

What nation in the world has done as much for silver, or is 
doing- as much to-day, as the United States; and what party has 
done as much, or is doing" as much, as the Republican party 
has done and is doing? The United States has, since 1873, in- 
creased the amount and per capita of its silver currency more 
than any other of the great nations, and even in the four years 
since its voters rejected the proposition for the free and un- 
limited coinage of silver it has steadily increased its stock of 
silver, while most of the nations of the world have decreased 
their supply. 

From 1873, the date of the so-called "crime" against 
silver, it has increased its stock of silver from $6,000,000 
to more than $000,000,000, increasing the per capita of silver 
Currency from 15 cents to $8.50. During that period it has 
actually coined over $600,000,000 worth of silver, out of a total 
of $3,360,000,000 by the entire world during that time, the coin- 
age of our own country forming' nearly 20 per cent of the world's 
entire coinage of silver. A table on page 273 shows the stock 
of gold and silver money in each of the principal countries of 
the world in 1873 and 1899, and it will be seen that the figures 
for the United States are, for 1873, $6,150,000, for 1899, $639,- 
000,010. 

The Record Since 1896. 

Another table, published on page 281, shows the amount of sil- 
ver in the principal countries of the world in 1896 and 1899. It 
will be seen that although the voters of the country rejected 
in 1896 the party which promised the free coinage of silver, the 
United States is the only country in the world, with the excep- 
tions of Russia and Mexico, which has materially increased the 
amount of its silver money, while nearly all of the countries, 
and among them those which in 1896 were looked upon as the 
principal champions of silver, have reduced their stock of silver 
money meantime. France, which was so often referred to in 
that discussion as silver's greatest friend, has reduced her stock 
of silver money $67,000,000. Japan, which was pointed at as a 
shining example of prosperity under silver, has adopted the gold 
standard and reduced her stock of silver from $84,000,000 to 
$25,000,000. The stock of silver in India, which was stated by 
the report of the Director of the Mint as $950,000,000 in 1S95, is 
now put down at $568,000,000, and the gold standard has been 
put in operation meantime. Russia, which was then quoted as 
a prosperous silver standard country, has meantime gone to the 
gold standard, increasing her stock of silver from $48,000,000 
to $81,000,000, however, and the United States, whose stock of 
silver was quoted by the Director of the Mint at $625,000,000, 
on January 1, 1S96, had on April 1, 1900, a stock of $645,000,000. 
The actual coinage of silver from the inauguration of President 
McKinley to April 30, 1900, has been, according to a statement 
recently furnished Representative Tongue by Hon. F. A. Van- 
derlip, Assistant Secretary of the Treasury: Standard silver 
dollars, $49,621,688; subsidiary silver, $27,051,504. Another table, 
published on page 000, showing the money in circula- 
tion in the United States in each year from 1860 down 
to date, puts the amount of silver in circulation in 
1S73 at $43,076,005 and the silver eehtiiicates in circu- 
lation on May 1, 1900. at $632,319,250, while the gold 
currency has increased from $20,000,000 in 1873 to $814,063,155, 
in gold and gold certificates in circulation on May 1, 1900, the 
total circulation having meantime increased from $751,881,809, 
4 97 



98 THE SIVER RECORD SINCE 1896. 

in 1873, to $2,060,525,463, on May 1, 1900, the per capita increase 
being from $18.04, in .1873, to $26.58. Meantime the. United States 
continues as the world's greatest producer of silver. A ladle 
on page 276 shows the coinage value of the silver produced in 
the United States in 1898 to have been $73,384,500, out of a total 
of $213,715,400 produced in the entire world, or 'more than one- 
third of the world's total production, while in the same year 
the gold production of the United States was $64,463,000, out 
of a total of $287,428,000, or nearly one-fourth of the world's total 
gold production. In 1899 the gold production of the mines of the 
United States was $72,500,000, out of a total of $315,000,000 pro- 
duced in the entire world. The gold production in the United 
States in 1899 is the largest years production in its history. 



THE COURSE OE SILVER FROM 1896 TO 1900. 

The developments with reference to the use of silver as a 
standard money metal have not justified the claims made in 
1896 by the supporters of the silver theory. They then pointed 
to the fact that two extremely prosperous and intelligent nations 
of the world, Japan and Russia, were adherents of the silver 
standard and asserted that their prosperity and rapid develop- 
ment were due to that fact. 

Scarcely had the echoes of the discussion of 1896 died 
away, how T ever, before it was announced that Japan 
had determined to adopt the gold standard, and this determina- 
tion was quickly carried out by that country. The new currency 
law of Japan making gold the standard, went into effect October 
1, 1897, and in a recent official statement Count Matsukata 
Masayoshi, the Japanese Minister of State for Finance, says: 

"Since the adoption of the gold standard our currency has been freed 
from constant fluctuation in its exchange rate to which it was subject 
before. Owing to this latter fact, moreover, the relations between the 
claims of the creditor and the liabilities of the debtor become less sub- 
ject to sudden and unexpected changes; business transactions were made 
safe; an improvement in credit took place in the community at large; 
prices became more constant; in a word, the way was now opened for 
the steady and orderly growth of our commerce and industry. 

"Leaving out of account in this section the questions concerning the 
effect of the coinage reform on the foreign trade of the country, it can 
be very clearly seen that since October, 1897, the prices of commodities 
have kept comparatively even; that while there have been some changes, 
yet, when compared with the sudden and great changes which used to 
occur formerly, we must say that the fluctuations were remarkably 
small. Besides, these small changes in the price of commodities can be 
amply explained by referring to the partial failure of rice crops, to the 
sudden expansion of Industry, and then to its as sudden depression, to 
a stringency in the money market, as well as to some other causes. 

"These changes in the price of commodities were due, therefore, to 
the natural working of the economic law of supply and demand in 
the commodities themselves. If we notice the fact, moreover, that the 
amount of checks and bills cleared at the clearing houses in Tokio and 
Osaka has remarkably increased during these recent months, notwith- 
standing the fact that during this very time there prevailed much busi- 
ness stagnation everywhere, Ave cannot but conclude that business trans- 
actions on credit have come to prevail more widely and freely than 
before. 

"The beneficial result of the coinage reform is seen In another direc- 
tion. Since now that the capitalists of the gold-standard countries have 
become assured that they will no longer be in constant danger of suffer- 
ing unexpected losses from investments made in this country on account 
of fluctuations in the price of silver, they seem to show a growing ten- 
dency to make such Investments at low rates of interest. This tendency. 
If encouraged, will doubtless bring about a closer connection between 
this country and the central money markets of the world— a state of 
things which I believe we shall be able to see realized, more and more 
fully, as years go on. 

"So far as our trade with gold-standard countries Is concerned, our 
adoption of the gold standard, which made us use the same standard 
of value as those countries, has proved to be a source of great benefit. 
This may be inferred from the fact that changes which have since 
taken place, in the rate of foreign exchange have been but very slight, 
and these all traceable to changes in the condition of the foreign trade 
of the country and not all traceable, as formerly, to sudden changes in 
the price of silver. 

"For this reason there was eliminated from our foreign trade much of 
that speculative element which was caused by constant changes in the 
value of our currency; so that the way was at last opened for the steady 
and natural development of the foreign trnde of the country. Again. 
concerning our commerce with silver-standard countries, contrary to the 
gloomy prospects indulged in by some critics, our trade with those 
countries has not ceased to make a steady growth, and this in the face 



COURSE OF SILVER SINCE 1896. 99 

of certain events occurring In the interior of China, our greatest cus- 
tomer among the .silver countries, events, such as natural calamities 
and disturbances, which have greatly hindered the commercial activity 
of that country. 

"Since our coinage reform enabled us to avoid all the evil effects of 
fluctuations in the price of sliver, we stand now no longer, as formerly 
was the case, under the necessity of making plans for financial matters 
with the currency constantly changing in value, and sometimes suffering 
unexpected losses and evils in times when those fluctuations are un- 
usually violent. All those fears of miscalculations and losses have now 
become things of the past. Most particularly in the last few years 
when national expenditures for things bought abroad, such as war ships, 
etc., have greatly increased in amount, we have doubtless been able 
to avoid, on a< count of our coinage reform, great losses on the part of 
the National Treasury. Le6id.es, since our adoption of the gold standard 
our Government bonds have been sold in no small amount in the Eu- 
ropean market, so that their names appear regularly in the price list 
of the London stock exchange. This fact at once converted our bonds 
into an international commodity, and will no doubt lead to a closer 
relationship between our home and the foreign money markets." 

The discussion also quotes a report of the higher commission on agri- 
culture, commerce, and industry, which, after an elaborate discussion 
of tbe effect of the monetary system, closes by saying, "We believe 
that the beneficial effect of our coinage reform on our foreign trade 
has already been great, and we do not notice any material evil in con- 
nection with it. Resides, mil' adoption of the gold standard has made 
it easier for our country to emtBT into the economic community of the 
world at large, so tbat henceforth it will become practicable for us to 
invite capital from other countries where it is plentiful to be invested 
in our country. This will doubtless bo another of the benefits con- 
ferred upon the country by our coinage reform. We conclude, there- 
fore, tbat the effect of the coinage reform upon our foreign trade haa 
been beneficial, without a trace of evil." 

Russia Adopts the Gold Standard. 

The Japanese example in adopting- the gold standard was 
followed in 1898 by Russia, and the phenomenal prosperity of 
that country since that time seems to have justified this' action. 
Certainly it has been sat . t6 the officials of that country, 

M. de Witte,the Russian -Minister of Finance, in his official report 
of 1699, says: "The year 1898 witnessed the completion of the re- 
organization of Russia's monetary system. That reorganization 
was completed by the ukase of March 27th, which provided for 
the payment of all accounts in roubles of one-fifteenth of an 
imperial, limits the coinage of silver and fixes a maximum 
above which private individuals are no longer required to receive 
that metal. Simultaneously the measures taken to substitute a 
circulation of specie for the paper money of Russia were about 
completed.'* He then presents figures showing that in the single 
year 1898 the number of gold roubles in circulation in Russia 
increased from $55,000,000 to $455,000,000, and that the bills of 
credit in circulation fell from $930,000,000 to $683,000,000, and 
adds: "On the one hand, metallic pieces, especially gold, tend 
to play a preponderating part in the economy of Russia's ex- 
change; of the 1,355,000 of roubles of circulating medium at the 
disposal of the public, 33 per cent are in gold and 10 per cent 
in silver. When we remember that scarcely three years ago 
Russia's circulation was composed to the extent of more than 
98 per cent of paper money and token coins, and that full weight 
silver coins and gold entered into it only to the extent of two 
per cent, it is impossible to ignore the immensity of the progress 
made. On the other hand, 1898 witnessed an increase in the 
general total of the quantity of gold existing in Russia, as 
well as of the gold serving as security for the bills of credit 
circulation. The stability of Russia's monetary regime is there- 
fore well proven. The total gold stock of the Bank of Russia 
(not including the 140,000,000 of roubles in gold belonging to 
the Treasury) exceeds by (;2n,000,000 roubles the figures of the 
obligatory stock. "We thus see clearh- how baseless are the fears 
that there may be exports of gold in quantities large enough to 
compromise the redemption of the notes." 

Peru, Costa Rica and Ecuador Adopt the Gold Standard. 

Peru, in 1897, followed the example set by Chile in 1895 and 
by Russia and Japan in the same year, and suspended the coin- 
age of silver and prohibited its importation. Costa Rica also, 
on October 24, 1896, adopted the single gold standard, and this 
was followed by the development of a number of important 
gold mines in that country, and in July, 1900, resumed specie 
payments. 



100 COURSE OF SILVER SINCE 1896. 

Ecuador, in 1898, followed the example of her sister republics 
Peru, Chile, Costa Rica, Venezuela, Uruguay and Brazil — and 
adopted a gold standard law, giving a period of two years for 
the definite conversion of the monetary system; so that Ecuador 
may be before the end of the present year classed with the gold 
standard countries. United States Consul DcLeon, discussing 
this action in a communication to the Department of State, in 
November, 1898, says: "The change by the world to a gold basis 
has finally driven Ecuador to adopt the same course, and Con- 
gress has just enacted a law of coinage which, within two years, 
will place the monetary system on a gold h'dziz. Our commerce 
has been inconvenienced not only by the depreciation of silver 
but also from the arbitrary fluctuations of exchange — sometimes 
as much as 40 to 60 per cent within a few months, and owing 
to excessive imports it was frequently impossible to buy from 
the banks a single draft on New York or London even for $50; 
secondly, the foreign trade relations of the country suffered 
great embarrassments, and finally the mercantile interests came 
to the conclusion that the only remedy for the unsatisfactory 
state of affairs would be the adoption of the gold standard at 
the ratio of 30.6 to 1. The stable condition of Ecuadorean cur- 
rency, the financial resources of the banks of issue, and the 
crying need for a fixed monetary standard seem to give assur- 
ance that there can be no unwisdom in the present measure. 
The effect of the present law will be to put Ecuador on a gold 
basis, and while paper will continue to be the money of cir- 
culation, it will be redeemable in gold." 

Establishment of the Gold Standard in India. 

(Prepared by the Director of the U. S. Mint.) 

On the 26th of June, 1893, the Indian Mints were closed to the 
unrestricted coinage of silver with a view to the eventual adop- 
tion of the gold standard. Pending- final legislation on the sub- 
ject, the government arranged to give silver rupees in exchange 
for gold, but did not venture to agree to give gold for rupees. 
It was also provided that British sovereigns would be received 
for all government dues. These measures were designed to di- 
vorce the silver currency of India from the value of silver bul- 
lion and to steady its value in relation to gold. In 1898, five 
years after the closing of the mints, the Indian Government ap- 
pointed a commission to consider what further financial legis- 
lation should be adopted. The conclusions reached were that 
the mints should continue closed to the coinage of silver, except 
on government account, that the gold standard should be defi- 
nitely adopted and steps taken to gradually accumulate a stock 
of gold. To facilitate the transfer of capital to India it was 
provided that gold would be received at the Bank of England 
and paper issued against it in India. Under existing laws silver 
rupees could be had for the India paper currency. This method 
made it possible to convert gold in London immediately into 
the silver currency of India. The Indian government at the close 
of the last fiscal year, March 31, 1900, reports 8,600,000 pounds 
sterling, or about $48,000,000, in gold deposited in London and 
in India for such conversion. It sums up the situation as fol- 
lows: "India has at length emerg-ed from the position of transi- 
tion in her currency, has reached the goal to which she has 
been struggling for years, has established a gold standard and 
a gold currency, and has attained that practical fixity in ex- 
change, which has broug-ht a relief alike to the private individual 
and to the Government finances." 

The Result of the Adoption of the Gold Standard as Noted in 

India. 

(From report of U. S. Consul General at Calcutta, April 2, 1900.) 

The policy of the government has been carried out under th Q 
most adverse conditions, the plague covering many districts, and 
the failure of rains last year causing a distressing and disastrous 
famine in large areas; besides, the cotton spinning and weaving 
industry has been in a more or less critical condition the past 
year. In sxoite of these conditions, the total value of trade dur- 



COURSE OF SILVER SINCE 1896. 101 

ing the ten months ended December 31, compared with preceding 
years, has been in round numbers: 



Year. 


Imports. 


Exports. 


Total trade. 


1897-98 


■ 

^244.500.000 
222.000,000 
251,000,000 


S279 r 500,000 
325,000,000 
824,500,000 


§524.000,000 
547.000.000 


layy-iyou 


575,500.000 



The import trade completely recovered from its depression; 
but some part of its increase is due to fresh capital corning out 
to India and the imports of gold in sovereigns from Australia 
and in yen from Japan. 

It was in its effect on the export trade that the enhancement 
of the value of the rupee ^ vas chiefly dreaded: but the figures 
do not justify the fears expressed, although there has been a 
serious decline in the export of wheat and of rice, owing — as 
regards the latter especially, which would otherwise have been 
exported — to its being required for the famine districts of India. 
Nevertheless, in spite of this, the decline in the whole volume of 
the exports is a very small fraction. 

But the statistics for opium do not support the allegation that 
the enhancement of the rupee and the fall in the exchange of 
China on India would check the opium trade. The demand has 
been brisker and the average price higher the past year. 

The foregoing shows that the closing of the mints and the 
consequent enhancement of the value of the rupee have not 
retarded the export trade of India, as was predicted by those 
who opposed the policy of the government which led up to the 
gold standard. 

The measure passed the loth of last September to make gold a 
legal tender in India was the outcome of the Indian currency 
committee's report, but the government was subjected to con- 
siderable pressure to defer action when the report appeared. It 
was contended that in making the sovereign legal tender, gold 
would be hoarded and would fail to reach the government deposi- 
tories, so that its gradual accumulation would be arrested, and 
the government would be driven into borrowing for its stock of 
gold; but the measure was passed, and the result is known. In- 
stead of gold ceasing to reach the government depositories, they 
have been nearly swamped with it, and the difficulty has arisen 
from its plethora — not from its scarcity. 

The amount of currenc}' reserve on April 1, 1S99, was about 
$10,000,000, and on March 7, 1900, it was about $35,000,000. The 
amount that had accumulated in London was about $4,500,000, 
making an aggregate of about $39,500,000. 

In a country like India, where it has been the custom of the 
native population to hoard silver, it will take longer to adjust 
itself to a gold standard ; but it will be seen that the government 
is accumulating gold, and it is gradually going into circulation, 
now being a legal tender. 

By the action of the government, India has become a gold- 
standard, and will gradually become a gold-currency, country, 
as the exchange value of the rupee is now fixed at the rate of 
15 rupees to the sovereign* ($4.S6), or, in other words, rupees 
are interchangeable at that rate at the government depositories, 
and, with normal conditions of trade, that rate will probably 
be maintained. 

India, which has been such a vast reservoir for silver, now 
being out of the list of silver-standard countries, must have an 
important influence in deciding the fiscal policy of other coun- 
tries, for her absorption of such immense quantities of silver 
has ceased, though the rupee will continue to be the currency 
for the smaller transactions, its exchange value being fixed by 
the government. 

These rapid movements to the gold standard since the rejec- 
tion of the silver proposition by the United States in 1S96 leaves 
oniy China, Mexico, Korea, Siam, Persia, and a handful of Cen- 

*Notk.— The rate of exchange nanifd. 15 rupees to the sovereign (or 
pound sterling) of $$4.S0\ places the exchange value of the rupee at 32.4c. 
Its exchange value prior to the fall of silver was about 50c. 



102 



COURSE OF SILVER SINCE 1896. 



tral American countries the representatives of the silver stand- 
ard currency. A table presented on page shows that the 
commerce of the entire group of countries having- the silver 
standard is but 5.33 per cent of the known commerce of the 
world and that of the exports of the United States only 4.S2 per 
cent are sent to the silver standard countries and 95.18 per cent 
to the gold standard countries. This table is prepared hx the 
Bureau of Statistics, Treasury Department, and is based upon 
data with reference to currency supplied by the United States 
Mint Bureau, and may therefore be accepted as accurate and 
presenting the latest available data upon this subject. Regard- 
ing- the actual currency of the few countries now retaining the 
silver standard, the following- extracts from statements supplied 
to the Mint Bureau by American representatives in those coun- 
tries are interesting and suggestive. 



Silver Coinage Under Presidents Cleveland and McKinley. 

The following table prepared by the Mint Bureau shows the 
coinage of silver dollars during the first three years of the ad- 
ministrations of Presidents Cleveland and McKinley, respec- 
tively: 



Date of the coinage. 



Standard j snl^idiarv 
Silver dollars.' Kaoawmiy. 



March 1, 1898, to April 90, 1896. 
March 1, 1807, to April 30, 1900. 



|8j882£81 

49,621,688 



-17.719.758.35 
27,051,504.70 



Gold Stocks of the World. 

The stock of gold in the United States has increased enor- 
mously since the nomination of Mr. Bryan in 1896, the gold 
in the United States, including the coin and bullion in the Treas- 
ury, being, according to the reports of the Treasury Department, 
$599,597,964, on July 1, 1S96, and on March 1, 1900, at the end 
of President McKinley's third year, it was $1,025,825,162. 

The following statement hj the Director of the U. S. Mint, 
in his annual report for 1S99, shows that the United States has 
led the world in increasing her gold stock in the past few years: 

"In the report of this Bureau a year ago an effort was made 
to tabulate the principal stocks of gold held for monetary use 
in the world at the close of the years 1892 and 1S97. 

"In the following table the stocks in European banks and 
treasuries on those dates are corrected from more accurate in- 
formation, and in addition they are given for the 31st day of 
December, 1S9S: 

Gold coin arid fruition in JBuropedn banks of issue on December Si, 189$, 
December 81, 18m, and December 31, 1898. 



Bank and treasuries. 



1892. 



1897. 



Bank of England a $112^52,762 

Scotch banks of issue b. . 24,805,271 

Irish hanks of issue b 14,c 

Bank of Germanv 78.7HM.7aO 

German war fund 28,560,000 

Austro - Hungarian Bank 

and public treasuries . . . 60,193,605 

Bank of France 329,779400 

Bank of Spain 36,727500 

Bank of Portugal 2.489.700 

Bank of the Netherlands. 15.400.200 

Nafnl Bank of Belgium . 14,289-900 

Bank of Italv ) 

Bank of Naples - 75.115.600 

Bank of Sicily I 

Russia : Imperial Bank 

and treasurv c 382,567,601 

Bank of Finland 4.188,100 

National Bank of Ron- 

mania 10,370.601 

National Bank of Bul- 
garia 386,000 

National Bank of Servia. 1.775.600 
Imperial Ottoman Bank 

in Turkev 4,438.184 



Increase. 



S137.42-.i54 $133,364,200 
:;0.122.'i78 31,942.942 $1 ,820,264 
15.191,473 14,917,838 
137,757,945 122;- 
28,560.000 2^,560.000 



205-981 J56 

376.909,700 

45334,660 

5.172.400 
12.776.H40 

wmsaa 



201.185.367 

351,761,800 

58.364.5O0 

5,230-800 

20.818148 
19261.400 



Decrease 



$3564,454 



278,642 

15.874,748 



76,621,000 77,586,000 



676,786,666 



4058560 



11,097.500 ll.V.0.700 



965500 



984,300 



5,984,979 8^98,317 



7,529.840 

"". 
8536.20N 
2,161,6001 

965,000 ! 



4.795.789 
25,147500 



108.1 21 J 66 
250500 



463,200 

38/J00] 
10,300 

2^63,338! 



tJKSB P SILVEB SINCE 1S06. 103 

. — ' 



Bank and ti> 



1897. 



r Decrease 



•rial Bank of i 

mark 15,72 ' " 

BankofXorway "_ " '"" 

:\u& pri- 

s - 

Bank of Greece 4J3J900 




Total . " -±m&H 

--: laoft&jjrd 



a Jm ment only. b T 

-ii banks. In 1898 these credits are elim- 
inated. 

'•This table shows a heavy decline in the gold holdings of Euro- 
pean banking institutions during the year 1898. At first thought 
the reduction is likely to cause surprise, for with the enormous 
gold production of the year, amounting to $257, 000,000, the stocks 
of that metal might be expected to everj-where augment. 

"When it is considered, however, that f] States took 

above $200,000,000 of gold in 1898 ? that India's net imports were 
over $20,000,000 and that the industrial consumption of the world 
was $65,000,000, it will be understood that no general increase 
in European stocks could occur last year.*' 



HOW SILVER IS MAINTAINED AT A PARITY WITH 

GOLD. 

It is the permanent policy oi this nation that the making of 
coins shall be vested exclusively in the Government. The Govern- 
ment makes the coins out of several metals, each designed to 
serve the people in the special way for which it is best fitted. 
The Government has declared itself in duty bound to preserve 
the parity of its coins. 

How is the parity maintained? The value of the silver in a 
silver dollar is much less than the value of the gold in a gold 
dollar, vet a silver dollar will buv as much as a gold dollar will 
buy. Why? 

There is a certain amount of money of small denomination ab- 
solutely needed by the people of the country for their ordinary 
retail transactions. Silver serves this purpose admirably. It has 
been found that so long as the limit is not exceeded there is 
comparatively little trouble in maintaining at a parity with gold 
the amount of silver legitimately demanded by business. In 
order that the business demands for silver may be fully met and 
satisfied, and yet that no more shall be forced into the channels 
of trade than is needed, our Government has adopted the follow- 
ing plan: 

1. The coinage of silver is on Government account: that is. the 
Government controls the volume of the silver coinage. 

B. In making payments for materials or services, and in the 
payment of obligations, it pays otit as much silver as is desired. 
It also holds itself ready to pay out silver in exchange for other 
forms of money. In these ways it gets silver into circulation, 
meeting in some measure th 

3. The Government stands ready to receive sitter at any time 
a6 the equivalent of gold in payments due to it. In this way, 
by indirect redemption in gold/ the silver is kept in the minds 
of the people as the equivalent of gold, and at the same time 
a reservoir is provided for any surplus which the channels oi 
tra/le may desire to rid themselves of. Aad, as has more than 
once been announced by the Treasury Department, the Govern- 
ment will, if necessary, give gold coin in exchange for silver coin. 

The method by whch the^ Government redeems its pledge to 
maintain the parity of the metals is. then, first, by so regulating 
the volume of silver coin in circulation as to meet as nearly as 
possible the demands of business, which are quite constant; and. 
second, by making silver coin indirectly or directly interchange- 
able with gold at the Treasury. 



THE GROWTH OF GOLD PRODUCTION. 

More Gold produced Since Mr. Bryan was Born than in the 
Four Preceding Centuries — Twice as Much Gold Mined Since 
1850 as in Three Hundred and Fifty Years Prior to that Date. 

The currency question was so thoroughly discussed in 189G 
and the assertions of the adherents of silver as a standard money 
metal have been so thoroughly disproven by the events since that 
date that a detailed discussion of the question seems now un- 
necessary, save for the fact that the allied parties have again 
made the free and unlimited coinage of silver the leading issue 
of their platforms. 

It is therefore proper to call attention to some great 
facts which account in some degree, at least, for the 
course of the great nations in one by one abandoning the double, 
fluctuating standard and adopting the single and now almost 
universal standard — gold. The general movement among nations 
for the adoption of the single gold standard began about 1870 
(except in the case of England, which took this action in 1816), 
and since that time all the nations of the world, excepting 
Mexico, China, Korea, Siam, Persia, and some of the smaller re- 
publics of Central and South America, have adopted the single 
gold standard. Recent statements indicate that China has been 
pushing for the introduction of the gold standard in her customs 
service, which, if accomplished, will doubtless be the initial step 
toward similar action with reference to the currency of that coun- 
try. Consular statements recently published indicate that Siam is 
preparing to adopt the single gold standard. Even in the short 
four years since the campaign of 1896 the gold standard has been 
adopted in Japan, with a population of 40,000,000; Russia, with 
a population of 125,000,000; India, with a population of 300,- 
000,000, and several of the Central and South American republics. 

The causes which have led to this almost universal change in 
the standard of currency in a comparatively short time are, at 
least, suggested by a study of the following table showing, the 
production of gold in the world, by half centuries and by de- 
cades, since 1492, the date of the discovery of America. The 
tables usually presented, showing the production of gold during 
that period, are misleading, in the fact that in the period prior to 
1850, which was the beginning of an enormous increase in gold 
production, the statements cover 10 and 20 year periods, while in 
the later years the statements are usually made in quinquennial 
and annual periods, and a casual examination of the table fails to 
indicate the enormous growth in production in the last half cen- 
tury, in which the periodical statements cover a less number of 
years than those exhibiting the earlier period. In the table 
which follows, the production in each decade from 1492 to 1900 
is shown; and an examination of the column showing the actual 
production by decades will in this way be more readily noted. 

In tlie three hundred and fifty-seven years prior to 1850, the gold produc- 
tion of the world averaged less than $10,000,000 per annum; in the fifty 
years since 1850 the gold production of the world has axeraged $135,000,000 
per annum, and in the year 1899 was $315,000,000. In the four closing 
years of the nineteenth century the gold production will he greater than that of 
the entire first half of the century. In the single year 1899 the gold produc- 
tion was as great as that of the first thirty-three years of the century. 

This enormous increase in the production of gold as compared 
with that of previous centuries began with the discovery of gold 
in California in 1847, followed by similar discoveries in Australia 
in 1853, then by later discoveries in Colorado a few years later, 
then by the enormous discoveries in South Africa, which have 
proved the greatest gold-producing mines ever known, and within 
the past three years the great discoveries in Alaska ; and all these 
have been supplemented and their results multiplied meantime 
by the development of new means of extraction, through which 
mines formerly abandoned as worthless again became valuable. 
These wonderful discoveries and developments account for the 
fact that the gold production of the world in the last fifty years 

104 



RAPID GROWTH OF GOLD PRODUCTION. 105 

has been more than twice as great as that of the x^receding three 
hundred and fifty years. 

As a consequence, the gold in existence to-day, accepting- the 
statistics of such eminent statisticians as Tooke, Newmarch, and 
Mulhall, and adding- to these the later statements of the Director 
of the Mint, is more than three times as great as in 1850. During 
that time the poulation has increased 50 per cent, being, accord- 
ing to equally eminent statisticians, 1,075,000,000 in 1850 and 
1,500,000,000 at the present time. This would give twice as much 
gold for each person to-day as in 1850. In addition to this, how- 
ever, Mulhall shows that two-thirds of the gold of the world to- 
day is coined and used as money, while in 1850 only one-third 
of the gold was coined. This again doubles the amount of gold 
money, making, therefore, more than four times as much gold 
currency for each individual in the world to-day as in 1850. 

Of the world's silver, according to the same authority (Mul- 
hall), 40 per cent was coined in 1850 and 53 per cent in 1890. 

Gold, unlike most commodities produced, is for the most part 
retained permanently — not eaten, or worn out, or destroyed — 
and each year's addition from the mines thus increases the 
world's permanent stock of the money metal, excepting the small 
proportion which is used up in the arts, the proportion thus 
saved averaging perhaps 20 per cent of the world's product. 
Keepiing this in mind, it will be seen that the result of the last 
half century of gold production in the total amount mined is more 
than twice as great as that in three hundred and fifty 3- ears pre- 
ceding, and has so enormously increased the world's permanent 
stock of this accepted money metal, that it seems of itself to 
offer an important, if not a complete, explanation of the fact that 
during that half century in which the product has so greatly in- 
creased practically all the nations of the world have abandoned 
the double standard and adopted this rapidly increasing and 
generally accepted measure of value. 

The arguments made in 1896 that there could be no sufficient 
addition to the currency of the United States without the free 
coinage of silver, and the assertion of Mr. Bryan that the Repub- 
lican party had made no provision for the necessary increase oi 
$42,000,000 of currency per annum which he said Secretary Sher- 
man had asserted Mould be necessary to correspond with the in- 
creasing population, have been more than answered by the events 
since that time. When Mr. Bryan was making these assertions the 
amount of gold and g-old certificates in circulation in the United 
States was $498,449,242 (July 1, 1896), and on July 1, 1900, was 
$815,474,460; the total monev in circulation on July 1, 1896, was 
$1,509,725,200, and on July 1, 1900, $2,062,425,496; and the money 
in circulation per capita, July 1, 1S96, $21.15; July 1, 1900, $20.50. 
Thus the per capita of money in circulation in .the United States 
has increased 25 per cent; the total money in circulation 33 per 
cent, and the gold in circulation 62 per cent since the supporters 
of the silver theory were telling the country that the onl} r method 
of increasing the currency of the country and bringing about 
prosperity was by the free and unlimited coinage of silver at the 
ratio of 16 to 1. The increase in currency, instead of being the 
$42,000,000 for which he said no provision had been made, has 
been $125,000,000 per annum, and~nearly all of it under the laws 
which existed at that time. 

Gold Now Being Produced Sixteen Times as Rapidly as From 
1800 to 1850. 

We have scarcely realized the relative increase in gold production dur- 
ing the time in which the world has generally adopted it as the standard 
-namely, the half century 1S50-1899. 

The active gold production of the world began about the middle of the 
present century, and has since that time increased by leaps and bounds. 
And while the marvelous growth of production was in progress, the 
nations of the world, one by one, but in quick succession, adopted as their 
standard the metal generally accepted by the world as such, and which 
they found now becoming so plentiful that they could rely upon obtaining 
a sufficiency to serve as a basis for and standard of their circulating 
medium. The great gold production of California, which began in 1848, 
was quickly followed by the discoveries in Australia, then those of Col- 
orado, then those of South Africa, then the Klondike and Cape Nome, 
and as a consequence the half century just ended has made a record al- 
most past belief. 



r 



10ft 



RAPID GROWTH OP GOLD PRODUCTION. 



Why is the whole world abandoning silver as a standard money metal 
and adopting gold as the basis of its currency? 

Many answers have been offered to this question, but it seems that a 
partial if not a complete explanation is found in the following statement 
of gold production of the world by half-century periods since 1492: 



WorltV 's production of gold, 1492 to 1899, fifty-year periods. 


Period. 


Coining 
value. 


1492-1550 


$256 ,092.000 


1561-1600 


245,850,000 


1601-1650 


281,840,000 


1651-1700 


824,440 ,000 


1701-1750 


587,580,000 


1751-1800 


675,240,000 


1801-1850 


787,460,000 


1851-1899 


6,665,682,00 






Total 


$9,823,684,000 





Look carefully at the table, which states the gold product by half-cen- 
tury periods, and you will see the enormous, the actually startling, in- 
crease in production in the half century just closed. One might easily 
believe that the production of the last fifty years was double or treble 
that of the preceding half century, or even a full century. But who 
would have said, without a close examination of the subject, that the 
last fifty years have produced twice as much gold as was produced in the 
three hundred and fifty years prior to that time? Yet it is a fact, if we 
are to accept the figures of Soetbeer for the earlier period and our own 
Mint Bureau for the later years. 

The increased production of silver has been great, though an examina- 
tion of the table which follows suggests that its increase may have been 
given undue weight in seeking a cause for the monetary events of the 
past half century. 



Gold and silver 


production 


of 


the 


world by fifty-yearpenods, 1492 to 1S99. 


Period. 


Gold. 


Silver. 


1492 1550.. 










$256,002 ,000 
245,850,000 
287,840,000 
824,440,000 
587.580,000 
675,240,000 
787,460,000 

6,665,632,000 


$222,400,000 


1551 1600 


726,780 ,000 


1601 1650 


831,060,000 


1651 1700 


716,660.000 


1701 1750 


875,720,000 


1751-1800 


1,495,080,000 


1801-1850 


1,860,240,000 


1851-1899 


4,958,162,000 














Total. . 


9,828,034,000 


11,186,102,000 















World's production of gold, 1492 to 1899, by decennial periods. 


Period. 


Production. 


Period. 


Production. 


1392-1500 


$30,840,010 
38,550,000 
38,550,000 
47,590,000 
47,590,000 
52,972,000 
56,560,000 
45,460,000 
46, 460,000 
49,050.000 
49,050.000 
56,820,000 
5< 1,1120,000 
55,11)0,000 
55,160,000 
58,280,000 
58,280,000 
61,540,000 
<>1 ,540.000 
71,540,000 
71,540,000 
85,200,000 


1711-1720 


$85,200,000 
126,810,000 
126,810,000 
168,560,000 
168,560.000 


1501-1510 . . 


1721-1730 


1511-1520 . 


1731-1740 


1521 1530 . 


1741-1750 


1531 1540 . 


il751-1760 


154-1 1550 . 


1761-1770 


137,610.000 


1551 1560. 


11771-1780 


1 87 ,(il 0.000 


1561 1570 


il781-1790 


118,280,000 
118,280,000 


1571 1-^80. 


1791-1800 


1581 1590 . . 


1801-1810 


118,1 50.000 


1591 1600 


1811-1820 


76,060,000 


1601 1610 . 


1821-1880 


94,480.000 


1611 1620. 


1881-1840 


184,840,000 


1621 1680 


1841-1850 


863,930,000 


1681 1640 


18&H-160O.. 


1,832,980,000 


1641 1650 


1861-1870 


1,263,015,000 
1,150,815.000 


1651 1660 . 


L87-1-1880 


1661 1670 


1881-1899. . , 


1,060,054,000 
1,858,768,000 


1671 1680 . 


1891-1899 




Total 




1691 1700 


9,823,084,000 


1701-1710 







Sixteen to One in Gold Alone. 

A careful examination of these tables will show that the entire gold 
production of the world from 1492 to 1850, a period of three'hundred and 
fifty-seven years, was but $3,158,000,000, or an average of less than 
$9,000,000 per year, while that of the period 1850-1899 was $6,665,632,000, 



SMALL TRADE WITH SILVER USING COUNTRIES. 



107 



or an average of over $135,000,000 per annum. This makes the annual 
average rate of production in the last half century more than fifteen times 
as great as the annual average of the preceding three and a half cen- 
turies, a ratio of present to former production which is startlingly near 
16 to 1. 

Follow the comparison down farther. The production of the decade 
1890-1899 was $1,977,616,000 (this refers to the full ten years, not the 
period 1891-1899 shown in the table). Now, if you contrast this with that 
of earlier periods you will find that the single decade 1890-1899 produced 
as much gold as the fifteen decades from 1700 to 1850; again a startling 
suggestion of 16 to 1. 

One more comparison: Take the tbree calendar years which have made 
their record of gold production since the campaign of 1S96. The world's 
production of gold in 1897 was $238,812,000; in 1S98, $287,428,000, and in 
1899, $315,000,000, a total of $841,240,000 in three years. Compare this 
with the table and you will see that the production in the three years 
since the nomination and defeat of Mr. Bryan on a free-silver issue has 
oeen more than that of The half century ending with 1850. The average 
production of the half century 1801-1850 was less than $16,000,000 per 
annum; that or the years since 1806 $286,000,000 per annum; this time 
more than 16 to 1. 

It is not asserted that the fact that the world is now producing gold 
sixteen times as fast as it did in the first half century means that there 
is no further use for silver, but it will be at least conceded that the rate 
at which gold is now being produced, as compared with earlier periods. 
is both startling and suggestive. The world's production of gold since 
the year in which Mr. Bryan was born, 1860, has been greater than in 
the three hundred and sixty-seven years prior to that date, the accurate 
figures being: 1492 to I860, $4,491,032,000; since I860, $5,332,652,000. 
Divide the world's production since 14!>2 into two equal sums, and you 
will Qnd that one-half of it has been produced since 1863, so that it may 
fairly be said that the past thirty-seven years have produced as much 
gold as the three hundred and seventy years which preceded them. The 
gold production of the year 1900 is estimated by the Director of the Mint 
as likelv to reach $400,000,000, which will make the product of the years 
1897. '08. '00, and 1900 aggregate $1,240,000,000, or nearly as much as the 
century 1750 to 1850. 

(All of the above statements nre from official reports of the Mint 
Bureau and Bureau of Statistics.) 

Commerce of the Gold and Silver Standard Countries of the 
World, Respectively, and the Share of the United States 
Therein. 

The following table, prepared by the Treasury Department, 
shows the population and total commerce of each of the gold and 
silver standard countries of the world, respectively, and their 
commerce with the United Slates, and especially their imports 
from the United States. It shows that only 5 per cent of the 
world's commerce is carried on by silver-standard countries, and 
that the silver-standard countries take but 4.8 per cent of the 
exports of the United States. 



Commerce of the go 1 '! and silver standard countries of th world and i.'w 
commerce of the tJnited Stah* with each country. 
[Compiled from official reports of the United Sta 



Gold standard countries. 



Algeria 

Austria-Hungary 

Belgium 

British Africa 

British Australasia 

British Honduras 

British North America. 

British West Indies 

Bulgaria 

Costa Rica 

Cuba 

Denmark 

Dutch East Indies 

Egypt 



France 

Germany 

Great Britain 

Hawaii 

India and Ceylon. 

Japan 

Netherlands 

Peru 

Roumania 

Russia 




Commerce with 
United States. 




$108*417,000 

b833,606j300 

659,197000 

263,282 000 

556,587j000 

2^26,000 

305,714,000 

53^45 000 

27 .987, !X>0 

10.088,000 

135.120,000 

20l.S98.O00 \ 

l-iWS9.0vX) 

il8|318,009 

M ,504.518,000 

62,186,918,000 

&3,969,876,O0o 

27,577.1X10 

495.717000 ; 

186,114,000 

1-292.13S.000 

23.240.000 

113,000.000 

460,093^000 



f /-81J.OOO 
14,413,000 

57.549,000 
16,800,000 

27.070.000 

771.000 

124.1 1 14. (XX) 

25.247.000 

No data. 

4.832.000 

54.481,000 

19.125.000 

33.901.000 

9.109 .0<Xi 

140,1 12. 000 

250,985,000 

052.280 XXX) 

33.494.000 

42>90.000 

54.808.000 

98,879,000 

8492,000 

145.000 

14.402,000 



a*,147,000 
6,359,000 

45 r SUi.00U 

15,400.000 

24,140,000 

867000 

88585,000 

10,382,000 

No data. 

1,283,000 

24.801,000 

18,474,01 

1,053,0(0 

525.ee;) 

70.107.00t) 

101.400.0UO 

509,958.000 

11.300.000 

4,510.000 

20.005,000 

83.001,000 

1.395.l><:(l 

145.00:) 

9,172,000 



Commerce of the gold and silver standard countries of the world and the 
commerce of the United States ivith each country. — Continued. 



Gold standard countries. 



Servia 

South African Republic. . 

Sweden and Norway 

Switzerland 

Uruguay 

United States 

On a paper basis. 

Argentina 

Brazil 

Chile 

Greece 

Haiti 

Italy 

Poi-tugal 

Spain 

Turkey 

Venezuela 

Total gold standard 
countries 



Silver standard countries. 

China 

Guatemala 

Honduras 

Hongkong 

Korea 

Mexico 

Nicaragua 

Persia 

Salvador 

Straits Settlements 

Siam 

On a paper basis. 

Bolivia 

Colombia 

Ecuador 

Paraguay 

Total silver standard 
countries 



Popula- 
tion. 



2,315,000 

1,096,000 

7,011,000 

3,083,000 

828,000 

75,000,000 



3,955.000 
14,834,000 

3,049,000 

2,434,000 

960,000 

31,668,000 

5,050,000 
17,566,000 
22,534,000 

2,444,000 



929,934,000 



402,680,000 

1,535,000 

400,000 

222,000 

10,529,000 

12,620,000 

420,000 

9,000,000 

804,000 

512,000 

5,000,000 



2,020,000 

4,000,000 

1,272,000 

600,000 



451,614,000 



Total com- 
merce. 



$19,734000 

158,234,000 

305,509,000 

362,418,000 

50,492,000 

62,074,345,000 



192,477,000 

235,149,000 

47,445,000 

38,051,000 

18,252.000 

444,769,000 

76,856,000 

334,480,000 

165,685,000 

34,751,000 



18,295,410,000 



$285,738,000 

16,971,000 

5,908,000 

30,000,000 

19,041,000 

102,673,000 

5,547,000 

43,798,000 

10,833,000 

413,947,000 

27,681,000 



22,557,000 
26,617,000 
11,008,000 
7,883,000 



1,029,302,000 



Commerce with 
United States. 



Total. 



No data. 

$14,904,000 
16,505,000 
3,215,000 



17,322,000 

11,035,000 
7,474,000 
1,229,000 
3,220,000 

52,222,000 
8,888,000 

16,871,000 
7,257,000 
8,311,000 



1,909,339,000 



$39,421,000 
3,041,000 
1,919,000 

10,128,000 
129,000 

53,935,000 
3,081,000 

No data. 
1,118,000 

No data. 

No data. 



27,000 
8,448,000 
2,278,000 

11,000 



124,136,000 



Imoports 

from 

United 

States. 



No data. 

$11,817,000 

216,000 

1,702,000 



11,325,000 
11,454,000 

230,000 
227,000 

2,858,000 
25,763,000 

5.113.000 

11,529000 

563,000 

2,641,000 



1,197067,000 



$15,225000 

843,000 

1039,000 

7,788,000 

128,000 

29,310000 

1,486000 

No data. 

635,000 

No data. 

No data. 



27,000 
2,986,000 
1,180,000 

11000 



60,658,000 



a 1897. 



b 1898. 



Commerce of the gold standard countries $18,295,410,000 

Commerce of the silver standard countries $1,029,302,000 

Per cent, silver countries 5.33 

Commerce of United States with gold standard countries.. $1,909,339,000 

Commerce of United States with silver standard countries. $124,136,000 

Per cent, with silver standard countries 6.15 

Exports of United States to gold standard countries $1,197,067,000 

Exports of United States to silver standard countries $60,658,000 

Per cent to silver standard countries 4.82 

Note.— The above includes 97 per cent of the world's commerce at the 
latest available date. 



MODELS FOR UNITED STATES CURRENCY ON THE 
DEMOCRATIC PLAN. 

The following is a description of the money system of three 
of the principal silver using countries of the world. It seems 
hardly probable that the people of the United States will agree 
to exchange their present splendid financial system for those 
herein described. The description is official, taken from the 
report of the Director of the U. S. Mint, 

108 '•. , ; ; 



The Money of Siam. 

The moneys of Siam are as follows: 

800 cowries equal 1 fuang; 2 fuango equal 1 salung; 4 salungo 
equal 1 bat or tical; 4 bats equal 1 tamling; 20 tamling equal 
1 chang; 50 chang equal 1 hap; 100 hap equal 1 tiira. 

Cowries (also called bia in Siam) are the well-known shells 
used in many parts of Asia and Africa as a medium of exchange 
for small values. In Siam about 219 or 220 are reckoned equal 
to 1 penny sterling, which corresponds closely to the general 
rating of the bat or tical at 2s. 6d. sterling; that is, however, more 
than the actual average value of the coin which is $0.60. 

Small pewter and copper coins have of late been introduced 
as a substitute for the cowrie shell. The pewter coins are called 
lot and at; they are small flat bits of pewter; 2 lots equal 1 at. 

The copper coin 2 ats, and about the same size as the English 
halfpenny, only a little thicker, is called song peis. Two song 
peis equal 1 fuang; 2 fuaugo equal 1 salung; 4 salungo equal 1 
bat or tical. 

The fuang and the salung are flat pieces of silver. They rep- 
resent simply a certain weight of the metal. It is the same with 
the bat. 

The coin called bat or tical is a small bit of a silver bar bent 
and with the ends beaten together. It has two or three small 
stamps impressed upon it. The weight of the bat or tical ranges 
between 212 and 236 grains troy, and is generally taken at 236 
grains (15.292 grams). 

The Money of Persia. 

Ten shabis equal 1 penebat; 2 penebats equal 1 sahibghiran, 
or kran; 10 krans equal 1 toman, or 200 shabis equal 1 toman. 

The principal coin is the kran. a silver piece of 71.065 grains 
0.900 fine. The krans which circulate vary, however, greatly as 
the mints of the country are not reliable, being farmed out 
for a yearly sum. The fineness of the coins oscillates between 
0.760 and 0.900. In larger transactions the toman is taken as 
the unit, reckoned equal to 10 krans. There are some gold 
tomans and half tomans in existence bm they are not the stand- 
ard; they circulate only as commercial money, and are taken 
by weight. 

The Money of China. 

The Chinese money of account is as follows: 10 cash or li, 1 
candareen; 10 candareens or fun or fen, 1 mace; 10 mace or 
tsien, 1 tael or liang. 

The lowest link of the chain alone, the cash or li, is repre- 
sented by an actual coin, whereas the candareen, the mace, and 
the tael are simph' denominations denoting certain fixed weights 
of silver. 

But the cash or li is not a silver coin; it is made from an 
alloy of copper, iron, and tin. It is a circular bit of metal 
seven-eighths of an inch in diameter with a square hole in the 
middle, round which are impressed, on the obverse, Chinese 
characters, stating the reign, etc.: on the reverse, Mantchu char- 
acters stating the name of the mint. These cash are cast in 
molds. Originally they represented one-thousandth part ofa tael, 
and nominally they continue to do so to the present day; but 
they have long since ceased to keep up a corresponding actual 
metallic value. 

Many 3'ears ago they had already fallen from the nominal 
1,000 per tael to 1,400. Since then their mintage depreciation 
has been making rapid progress. Some time ago it required 
from 1.600 to 1,800 of these coins to make up the value of a tael. 

The monetary unit — the tael — is in Shanghai a quantity of 
silver of the fineness of the Mexican dollar (about .898), and 
weighing a tael, which would make 1 money tael equal $1.3937, 
and $100 equal 71.7517 money taels. 

At Shanghai foreign accounts are kept and the quotations are 
given in taels. Generally, when converting taels into dollars, 
$100 are taken to equal 71.7 taels, or 1 tael equals $1,395. 

Besides the Canton tael weight (37.573 grams), there is the 
haikwan tael, or Government tael, which weighs 590.35 grains 

109 



•1 



HO THE MONEY OP CHINA. 

(38.246 grams), or 2 per cent more than the Canton tael (100 
Canton taels equal 98 haikwan taels). 

At Shanghai there is another tael weight about 2y 2 per cent 
lighter than the Canton weight, 36.56 grains (5G4.20 grains troy). 
It is used as weight for gold. 

There are several local taels at the various ports in China 
differing greatly in value as compared with the haikwan or 
Government tael. 

From the above it will be seen that one uniform currency or 
coinage for the whole of China is a great desideratum. 

In large native transactions ingots of silver form the medium 
of exchang*e. These ing"ots are called shoes, from some fancied 
resemblance in shape. They range in weight from a half -tael to 
100 taels. 

The Shanghai currency consists of such shoes of silver of 
about 50 taels weight each. These ingots are rendered current 
by the hong koo, who assays the metal, and affixes to each ingot 
assayed by him a stamp recording- its touch or degree of purity. 
The hong koo is not an official appointed by the Chinese Govern- 
ment, but derives his authority entirely through an arrangement 
among the native bankers. 



A full day's work must be paid in full dollars. — Major 
McKinley at Canton, 1896. 

We cannot help labor by reducing the value of the money 
in which labor is paid.— Hon. Wm. McKinley to delegation of 
workingmen, August 24, 1896. 

You cannot help the farmer by coining more silver; he can 
only be helped by more consumers for his products. — Maj. 
McKinley to delegation of farmers, August 24, 1896. 

The way to help labor is to provide it with steady work and 
good wages and then to have those good wages always paid 
in good money. — Maj. McKinley to delegation of workingmen, 
August 24, 1896. 

A depreciated currency would work disaster to the interests 
of the people and to none more than those of the workingmen 
and farmers. — Hon. Win. McKinley to delegation of working- 
men, July 30, 1896. 

If we have good wages, they are better by being paid in 
good dollars, and if we have poor wages they are made poorer 
by being paid in poor dollars. — Maj. McKinley to delegation 
of workingmen, at Canton, 1896. 

The dollar paid to the farmer, the wage earner and (the 
pensioner must continue forever equal in purchasing and debt- 
paying power to the dollar paid to any Government creditor. 
— Maj. McKinley to Notification Committee, 1896. 

I believe it is a good deal better to open the mills of the 
United States to the labor of America than to open the mints 
of the United States to the silver of the world. — Maj. McKin- 
ley to his comrades of the 23rd Ohio Regiment, at Canton, 
August 12, 1896. 

The Republican Party stands now, as it has always stood 
and always will stand, for sound money with which to meas- 
ure the exchanges of the people; for a dollar that is not only 
good at home, but good in every market place of the world. 
— Major McKinley to Young Men's Republican Club, June 26, 
1896. 

The menace of 16 to 1 still hangs over us with all its dire 
consequences to credit, confidence, business and activity; the 
enemies of sound money are rallying their scattered forces. 
The people must once more unite and overcome the advocates 
of repudiation. — President McKinley to the Notification Com- 
mittee, July 12, 1900. 



TRUSTS. 

The Real Attitude of the two Great Parties. 

The attitude of the two great parties on the Trust question 
is clearly defined. That of the Democratic party looks to con- 
stant agitation, with no> restrictive legislation; that of the Repub- 
lican party to such restriction as will prevent arbitrary advance 
in prices, or reduction in wages through exclusive control, but 
not the destruction by legislation or injury by fictitious agitation 
of legitimate enterprise through great manufacturing systems 
by which production is cheapened, prices of manufactures re- 
duced, and permanency of employment assured. As far back r— 
as the Fiftieth_£ongress the Democrats began their agitation for 
effect by t"h~e" passage of a resolution authorizing the House Com- 
mittee on Manufactures to enter upon an investigation of the ( 
Trusts of the United States. • Such distinguished Democratic JX* 
leaders as Representative Wilson of West Virginia, Representa- f 
tive Breckinridge of Arkansas, Representative By num. of Indiana, I 
and Representative Bacon of New York were members of the V 
Committee, and they were given power to administer oaths, ex- 
amine witnesses, compel the attendance of persons and the pro- 
duction of papers, and make their investigation a thorough one. 
More than 100 witnesses, including H. A. Havemeyer and Clans 
Spreckels of sugar fame, Mr. Rockefeller, Mr. Flagler and others 
of the Standard Oil Company, and representatives of the cotton 
bagging trust and whisky trust were examined. A thousand! 
pages of testimony were taken and the Committee delayed its! 
report until one day before the expiration of the Congress, when 
it presented its testimony, but made no recommendation as to 
legislation, "owing to fhe present difference of opinion between 
members of the Committee." In the Fifty-second Congress the 
House Judiciary Committee made another invest i gat ion, and af- 
ter an examination of many witnesses, submitted a report in J 
which it declared that "none of the methods employed by the ^ 
trust in controlling the production or disposition of their pro- " v t < <' 
ducts are in violation of the United States laws," and that "it 
is clearly settled that the production or manufacture of that 
which may become a subject of inter-State commerce and ulti- 
mately pass into protected trade is not commerce, nor can man- 
ufacturers of any sort be instruments of commerce within the 
meaning of the Constitution." In 1894 they again grappled with 
the Trust problem, adding to the Wilson-Gorman tariff law a se- 
ries of provisions purporting to authorize the regulation of 
Trusts, but which neither the Democratic President nor the 
Democratic officials who were in power when the Act came into 
existence made, so far as is known, any attempt to put into 
operation. 

The Sherman Anti-Trust Law. 

The difference between Democratic promises and Republican 
performances is strikingly illustrated by the enactment of the 
measure known as the Sherman Anti-Trust Law, which was en- 
acted in 1890 by a Republican Congress and signed by a Re- 
publican President — Benjamin Harrison. Although the Demo- 
crats sneered at the bill, which they contended was simply a 
piece of buncombe and would be only a dead letter, the recent 
decisions of the Supreme Court have shown that it is at least the 
only piece of legislation ever put upon the statute books which 
has the semblance of power to control and prevent combinations 
in restraint of production or commerce. 

Under this law the Supreme Court of the United States, on the 
24th day of October, 1898, held illegal the Joint -Traffic Associa- 
tion, an agreement entered into between some thirty-one differ- 
ent railroad companies, and, enjoined its further execution. 

The Court held in this case: 

"2. Congress has the power to prohibit, as in restraint of inter- 
state commerce, a contract or combination between competing 
railroad companies to establish and maintain interstate rates 
and fares for the transportation of freight and passengers on 

111 



llfJ TRUSTS AND TRUST LEGISLATION. 

any of the railroads, parties to the contract or combination, even 
though the rates and fares thus established are reasonable. 

"3. Congress has the power to forbid any agreement or com- 
bination among or between competing railroad companies for 
interstate commerce, by means of which competition is pre- 
vented. 

"5. The statute under review is a legitimate exercise of the 
power of Congress over interstate commerce, and a valid regula- 
tion thereof." 

(See United States vs. Joint-Traffic Association et al., 171 U. S. 
505.) 

Another well-known case was the Addystone Pipe & Steel 
Co. et al. vs. the United States, a proceeding brought on behalf 
of the United States under the Anti-Trust Act of Congress 
passed July 2, 1890. It was charged in the petition that the de- 
fendants, six corporations who were engaged in the manufacture, 
sale and transportation of iron pipe, entered into a combination, 
a conspiracy, among themselves, by which they agreed that there 
should be no competition between them in any of the States or 
Territories mentioned in the agreement (comprising some 36 
in all) in regard to the manufacture and sale of cast-iron pipe. 
The action was undertaken for the purpose of obtaining an in- 
junction perpetually enjoining the defendants from further act- 
ing under or carrying on the combination alleged 'in the X'etition 
to have been entered into between them, on the ground that it 
was an illegal and unlawful one under the Act above mentioned 
and because it was in restraint of commerce and trade among the 
States. 

Judge Taft, of the U. S. Circuit Court of Appeals, now Presi- 
dent of the Philippine Commission, rendered a decision holding- 
the agreement to be illegal and unlawful under the Anti-Trust 
Act. His decision was affirmed by the Supreme Court December 
4, 1899, thereby affirming the power of Congress to deal with il- 
legal combinations of that nature and proving, beyond ques- 
tion, the great value of the Sherman Anti-Trust Act. 

President McKinley on Trusts. 
Recent events show even more clearly the real attitude of ihe 
two parties. President McKinley in his message sent to Con- 
gress on December 4, 1899, called pointed attention to the im- 
portance of legislation upon this subject, saying that "combina- 
tion's of capital organized into trusts to control the conditions of 
trade among our citizens, to stifle competition, limit production 
and determine prices of products used and consumed by the 
people are justly provoking public discussion and should early 
claim the attention of Congress." He added that President Har- 
rison had also urged legislation to prevent organizations intend- 
ed to crush out healthy competition and monopolize production 
or sale of articles of general necessity, and that in accordance 
with that recommendation an Act (the Sherman Anti-Trust 
.Law) had been passed, but that efforts to enforce it had been in 
many cases unsuccessful. He showed further that President 
Cleveland, in view of the difficulties of enforcing legislation of 
this character, had stated in his message of December 7, 189(5, 
that "the laws passed for that purpose have thus far proved 
ineffective because the laws themselves as inter preted by the 
.courts do not reach the difficulty," and had suggested State legis- 
lation, saying that "even though it may be found that Tcderal 
authority is not broad enough to fully reach the case, there can 
be no doubt of the power of the several States to act effectively 
in the premises." "The 'State authority' to which President 
Cleveland looked for relief from the evil of Trusts," added Pres- 
ident McKinley, "has failed to accomplish fully that object. 
This is x^robably due to a great extent to the fact that the differ- 
ent States take different views as to the proper way to discrim- 
inate between evil and injurious combinations and those asso- 
ciations which are beneficial and necessary to the great business 
prosperity of the country. The great diversity of treatment in 
different States arising from this cause and the intimate rela- 
tions of all parts of the country to each other without regard to 
State lines in the conduct of business has made the enforcement 
of State laws difficult." 



TRUSTS AND TRUST LEGISLATION. US 

Democrats Defeat the only Legislative Remedy Found. 

The real remedy suggested by this candid statement of facts 
was apparent — a Constitutional amendment which would permit 
the enactment by Congress of such laws as could be enforced by 
Federal courts in every part of the country without interference 
with the rights of the States. While attacks upon Trusts have 
been the stock in trade of professional agitators, none of them 
has offered any practical legislation which could be enforced in 
the several States other than that which might be j>rovided 
through a Constitutional amendment. Even Mr. Bryan, who 
omits no opportunity to declare his hostility to Trusts, offers no 
legislative remedy other than that which would be supplied by a 
Constitutional amendment. In his address before the Trust 
Conference in Chicago, on September 16, 1899, he said: "I be- 
lieve we ought to have remedies in both State and nation, and 
that there should be concurrent remedies. * * * * I believe in 
addition to a State remedy there must be a Federal remedy, and 
I believe Congress has, or should have the power to place restric- 
tions and limitations, even to the point of prohibition, upon any 
corporation organized in one State that wants to do business 
outside of the State. * * * Congress ought now to pass such 
a law. If it is unconstitutional and so declared l>a tlw Supr*6iHe @ourt J " 
am in favor of an amend merit to the Von&Uiittdn that will give to Con- 
gress power to destroy every Trust in the country." Yet, in the 
face of this assertion, when the Judiciary Committee of the House 
of Representatives on June 1, 1900, brought before that body a joint 
resolution providing for a Constitutional amendment which should . 
give Congress power to regulate Trusts, only 5 Democrats voted 
for it, while practically every Republican in the House voted for the 
measure, but as it required" a two-thirds vote, the Democrats were 
strong enough to defeat it. 

Two Democratic Chairmen on Trusts. 

Two other brief chapters in the history of the Fifty-sixth Con- 
gress close the record of the Democratic party in regard to their 
alleged hostility to Trusts. First, is the fact that Senator Jonc*. 
of Arkansas, the Chairman of the Democratic National Commit- 
tee, offered in the Senate an amendment to the Porto Riean act 
XU-oviding for the repayment of duties on articles imported from 
Porto Rico since the occupancy by the United States-— a proposi- 
tion which, it was clearly shown, would have resulted in tin- 
payment of about $1,500,000 to the Sugar Trust; while Represen- 
tative Richardson, the leader of the Democratic side of the 
House and Chairman of the Democratic Congressional Commit- 
tee, offered in that body a resolution admitting free of duty sugar 
from Porto Rico and Cuba, which, it is conceded, would Wave 
been equivalent to presenting the Sugar Trust with about $K>- 
000,000 annually. 



THE TAMMANY ICE TRUST. 

An Example of Democratic Pretense and Practice on the Trust 

Question. 

The Kansas City platform declares "an unceasing warfare in 
nation, State and city against private monopoly in every form." 
This portion of the document is written in expressive language 
by a master hand, probably that of Augustus Van Wyck, the 
New York member of the Platform Committee, who is an expert 
in the subject of "monopolies and trusts." He is one of the 
largest stockholders in what is popularly known as the Tam- 
many Ice Trust, which the leading Democratic newspapers of 
New York City recently described as "A conspiracy to coin fever 
and thirst into dividends." 

The Ice Trust was organized to control the supply and fix 
the price to the consumers in the great City of New York of 
one of the prime necessaries of life. It was organized by Demo- 
cratic politicians, many of whom are officeholders whose official 
authority could be and has been used to promote its prosperity 
and swell its profits. Immense as were the financial resources 



114 THE TAMMANY ICE TRUST. 



H 



of this unlawful monopoly it could not expect to control every 
source of supply. Both Divine Providence and human science 
forbade that, but it could virtually prevent the necessity of 
life from reaching- several millions of consumers except through 
the channels it provided and on the terms it demanded. This 
was easily done through the connivance of Democratic officials 
who controlled the dock privileges of the great city, two of 
whom were dock commissioners, and another the Mayor. This 
having been accomplished the Trust advanced the price of ice 
which cost it one dollar to one dollar and fifty cents a ton in its 
delivery wagons, to three and four dollars a ton to its wholesale 
customers and sixty cents the 100 pounds, or at the rate of 
twelve dollars a ton (double the price of coal), to small consu- 
mers. At the same time it proclaimed that thereafter no sales 
of ice in "five-cent pieces" would be made, thus virtually de- 
priving of this prime necessity of life all persons who were 
too poor to buy more than five-cents' worth at one time and all 
who were not able to indulge in the luxury of refrigerators or 
ice chests, the two classes together numbering several hundred 
thousand persons in the great city which this Democratic Trust 
holds by the throat. Later, the Trust was compelled by force 
of public opinion to make a partial concession to its poorer cus- 
tomers, which it did with an iusult by compelling them to 
show that they were actually too poor to buy more than a half- 
dime's worth of ice at a time. 

All these things were done this year by this Democratic Trust, 
and are being done to-day, when ice is furnished to consumers 
in Savannah, Georgia, at the rate of 5 cents for 50 pounds. 

Who compose this monopoly? Among its stockholders were the 
following Democratic officeholders and politicians, a few of whom 
may have disposed of their stock on account of the exposure 
of the infamies of the organization: 

Robert A. Van Wyck, Mayor — 10,175 shares. 

Augustus Van Wyck, brother of Maj'or, Democratic candidate for 
Governor, 1898; New York member Kansas City Platform Com- 
mittee — 7,000 shares. 

J. Sergeant Cram, Dock Commissioner. 

Charles F. Murphy, Dock Commissioner. 

John Whalen, Corporation Counsel, Delegate to Kansas Citv 
Convention. 

H. S. Kearny, Commissioner Public Buildings, Lighting and 
Supplies. 

George V. Brawer, Park Commissioner, Brooklyn. 

Randolph Guggenheimer, President of Council/ 

Joseph E. Newberger, Judge General Sessions. 

Martin T. McMahon, Judge General Sessions. 

Rufus B. Cowing, Judge General Sessions. 

Among the other members of the judiciary either of the Court 
of General Sessions or of the Supreme Court whose names were 
found on the register of stockholders were the following Demo- 
cratic Judges: George C. Barrett, George L. Ingraham, James 
Fitzgerald, H. A. Gildersleeve, Edgar L. Fursman and Edward 
Patterson. 

But more illustrious names than theirs are to follow. Richard 
Croker, the Democratic "Boss," who led the New York delega- 
tion m the Kansas City Convention and deputed Augustus Van 
Wyck to act as a member of the Platform Committee, is down 
for one thousand shares, and the names of several members of 
7^ S A f ?:^ lly als ° a PP ear on the lis * of stockholders, indicating 
that his presents to them do not all consist of "bull pups" at 
$4,000 apiece. John F. Carroll, the deputv boss, who acts in 
Croker's absence, and who was also one of the delegates to the 
Kansas City Convention, is down for 10,250 shares. A good deal 
of ice is brought from the rivers of Maine, which were visited 
by Mayor Van Wyck and John F. Carroll some weeks ago, with 
an eye to business, and on the list of stockholders of the Ice 
Trust it was not surprising to find the illustrious name of Ar- 
thur Sewall, of Bath, who was one of the tails to Bryan's kite 
four years ago. The names of two Democratic ex-mayors of 
"New York— Hugh J. Grant and Thomas F. Gilroy— were found 
on the same list. 



DEMOCRATIC FRIENDSHIP FOR TRUSTS. 115 



National Democratic Chairman Jones as a Friend of Trusts. 

To return to the Kansas City Convention and its platform. It 
was truly appropriate that the latter should be presented to the 
Convention by Senator J. K. Jones, of Arkansas, and that it 
should be received on behalf of the Convention by its permanent 
Chairman, Representative James D. Richardson, of Tennessee. 
The former was the Chairman of the Platform Committee and 
is the Chairman of the Democratic National Committee. He is 
also a member of the Finance Committee of the United States 
Senate, and in that capacity he took an influential part in fram- 
ing- what is sometimes known as the "Sugar Trust Tariff" of 
1894. It may be remembered that the butler — it was his house 
maid — of Senator MePherson, of New Jersey, having- become 
possessed of some advance information about the sugar rates of 
that tariff (his or her employer being- one of Senator Jones's 
colleagues of the Finance Committee), bought some Sugar Trust 
stock and turned a comfortable penny by the transaction. Sena- 
tor Jones next distinguished himself as a foe of the Sugar Trust 
a few months ago. when the Porto Riean Relief bill was under 
consideration in the Senate. It was proposed to use the money 
collected as duties on Porto Rican products which had been 
brought into the United Sta+es for the benefit of the island. 
That did not strike Senator Jones favorably and he offered an 
amendment providing that the money should be returned to those 
from whom it had been collected. If his amendment had been 
adopted nearly twelve hundred thousand dollars would have 
been paid out of the National Treasury into the treasury of the 
Sugar Trust instead of being- used for the benefit of Porto Rico. 
But the Republican Senate did not adopt the amendment offered 
by Senator Jones, who was one of the framers of the Kansas 
City Platform, and is the Chairman of the Bryan National Cam- 
paign Committee. 

Congressional Democratic Chairman Richardson as a Friend 

of Trusts. 

Representative Richardson, permanent Chairman of the Kansas 
City Convention, and Chairman of the Democratic Congressional 
Campaign Committee, also distinguished himself in the last ses- 
sion of Congress by his sturdy opposition (?) to "trusts and mo- 
nopolies." He offered a series of joint resolutions aimed against 
them. One of these, which provided for the abolition of the 
duties on all sugar and molasses produced in Cuba and Porto 
Rico and brought into the United States, was referred to the 
Ways and Means Committee, of which he is a member. This was 
House Joint Resolution No. 181, Fifty-sixth Congress, First Ses- 
sion. After consideration by the Committee it was moved that 
the resolution be reported back to the House with an adverse 
recommendation. On this motion, Mr. Richardson, the leader of 
the Democratic minority in the House, voted in the negative. 
From the adverse report of the Committee it appears that if 
the joint, resolution should become law the sugar consumers 
of the United States would derive no benefit whatever from it 
but that the Sugar Trust would be befltr nf bi; the -nrn of tou-tpcn. mdli> n dol- 
lar a vear mnr,*, and that the sugar growers of the United States 
would be deprived of a large measure of the protection necessary 
to the maintenance and growth of that important domestic industry. 

Mr. Bryan as a Friend of Trusts. 

Perhaps the most striking example, however, of persistent 
support of trusts by men who are constantly professing hostility 
to them, is the course of Mr. Bryan with reference to that great- 
est combination of this character known to the United States, 
the Silver Trust. If there are any two subjects upon which 
Mr. Bryan has been frequently heard from in the past 4 years 
it is "political bossism" and "the Trust question." Yet if the 
reports from Lincoln and Kansas City during the early days of 
the Democratic Convention of 1900 are true — and they have not 
been denied by Mr. Bryan or his friends — he on that occasion 
performed the most remarkable feat of political bossism ever known 
to history and performed it in the interest of the greatest trust 
known to the United States, the Silver Trust, which is made up 



116 BKYAN AND THE SILVER TRUST. 

largely of alien owners of our great silver mines. It is well 
known that a majority of the convention and a majority of 
the Committee on Platform was opposed to a distinct declaration 
in favor of the free coinage of silver at 16 to 1, preferring to 
"sneak" the silver question in by the equally effective but more 
delusive method of a general reaffirmation of the Chicago Plat- 
form of 1S96. When Mr. Bryan heard of this, it is asserted 
(and not denied) that he sent word that unless a distinct decla- 
ration in favor of the free and unlimited coinage of silver at 
16 to 1 were inserted he would take the first train for Kansas 
City, enter the convention as a substitute for some Nebraska 
delegate, and lead the fight for a distinct declaration of this 
kind, and that if it were not inserted in the platform in specific 
terms lie would refuse a nomination on the platform or by the party. 

The result is known: the Platform Committee, by the aid of 
the vote of the delegate from Hawaii, put into the platform a 
specific declaration in favor of free coinage at 16 to 1, and the 
convention, at the demand of this greatest Political Boss, con- 
trolled by the greatest of trusts, calmly swallowed it. If there 
is any doubt about what is the "paramount issue" of the plat- 
form there can be none as to the paramount issue in the mind 
and intent of Mr. Bryan, as the representative of the Silver Trust. 

On this question of his relations to the Silver Trust the fol- 
lowing statement, published July 11, 1896, by his now ardent 
supporter, the Chicago Chronicle, will be accepted as authori- 
tative : 

"The proprietors of the Big Bonanzas have found it profitable to keep 
a large number of orators, lecturers and other spokesmen on the road. 
Among the men who have been thus employed and carried on the pay- 
roll of the Big Bonanzas for a number of years is Wm. J. Bryan of 
Nebraska. A paid agent of and spokesman for the silver combine, he has 
not since his retirement from Congress had any other visible means of 
support. The richest men in the world, the proprietors of the Big 
Bonanzas, hire orators like Bryan exactly as other wealthy men hire 
fiddlers, and value them about as highly. Silver orators, like fiddlers, 
come in at the back doors of the Big Bonanzas and eat at the servants' 
table. Since he holds that relationship to the Big Bonanzas, Wm. J. Bryan's 
nomination by their order, and as a result of the free use of their money, be- 
comes an insult to the American people of no small proportions." 



TRUSTS IN FREE TRADE ENGLAND. 

England has no tariff, and trusts exist and nourish in free- 
trade England — trusts more monstrous than any that we 
know anything about. 

Trusts have long existed in free-trade England, even a coffin 
trust forming one of the features of English manufacturing en- 
terprise not many years ago. A few years ago there was or- 
ganized a steel-rail trust, which embraced the steel-rail manu- 
facturers of Great Britain and of several continental countries. 
On February 15, 1896, the London Ironmonger announced the or- 
ganization of another steel-rail trust, its operations to be re- 
stricted to the steel-rail manufacturers of Great Britain, one 
of its features being that "there is to be no underselling." The 
London Iron and Coal Trades Eeview says that this trust was 
organized in October, 1895. The Ironmonger says that "it is 
worthy of note that at this juncture there are ten home steel 
works producing rails, as against seventeen or eighteen formerly 
combining, and it is believed that this smaller 'ring' will be more 
easily managed." In a subsequent issue the same authority 
stated that "all the principal British concerns are in the 'ring,' 
so that it will not be easy for the smaller mills to run against 
it with good results to themselves." Prices of English steel rails 
were remarkably uniform after October, 1895, and all through 
1S96, averaging above £4 10s. per ton. Early in 1895 the Shef- 
field Telegraph published the draft of a scheme proposing that 
200 iron firms of South Yorkshire, Lancashire, Derbyshire, Staf- 
fordshire, Worcester, and Shropshire should form an organiza- 
tion to be known as the Midland Iron Trade Association, which 
would regulate the prices of all classes of manufactured iron. 

The Manchester (England) City News of January 2, 1897, has 
this to say; 



I j"i TRUSTS IN FREE TRADE ENGLAND. 117 

A Free-Trade Armor Trust. 
"Arrangements are being completed for the amalgamation of 
the great armament-manufacturing firms of Manchester and 
Newcastle, Sir Joseph Whitworth, Limited, and Sir William 
Armstrong, Limited. Of course, until the proposals and their 
conditions have been adopted by the shareholders of both com- 
panies, the proposal is open to rejection; but it is believed that 
within a month those financially concerned will confirm and 
complete the steps taken by the directors of the Elswick and 
Manchester concerns. Elswick, if the amalgamation is effected, 
would have at its back the added resources of the Manchester 
works, which, it is expected, would be found of the utmost value 
and importance in case of r^ergency, as giving Sir William 
Armstrong & Co., Limited, power to fully and promptly meet 
those sudden demands by which the Elswick firm have, within 
recent months, been very much pressed. 

"The capital of Sir William Armstrong. Limited, is £4,000.000, 
consisting of 3,000,000 ordinary shares of £1 each and 200,000 
preference shares at £ 5 each. At the beginning of the present 
year the ordinary share capital of the company was £2,000,000, 
made up of 20,000 shares of £100 each; but a revaluation of the 
concern took place, and showed an increase of £1,000,000. The 
increase was presented to the shareholders by the one-hundred- 
pound shares being fixed at £150, and the reconstruction of the 
company immediately followed, by which the ordinary share 
capital was raised to 3,000,000 one-pound shares. The last an- 
nual meeting was held on September 24, and the dividend de- 
clared was 11% per cent. In the year 1874, Sir Joseph Whit- 
worth & Co., Limited, was formed to conduct and carry on the 
engineering business up to that time, and managed by the firm 
of that name. The company, however, was registered in 1SS8, 
with extended powers, as Whitworth & Co. of Openshaw, Lim- 
ited, but the old title was afterwards reverted to. All the au- 
thorized capita] of £700,000 in ten-pound shares has been sub- 
scribed and paid up, and there are also £278,398 of 5 per cent 
debenture stock and £17,713 of deposits. In 1889 the company 
paid a dividend of 10 per cent, and in the two following years 
15 per cent was distributed. In 1892 and 1893 the dividends pnid 
were at the rate of 10 per cent, and in 1894 and 1S95 the rate was 
only 5 per cent, while in 1894, in order to make the distribu- 
tion, £ 15,000 Avas transferred from reserve. 

"It is understood that the Elswick firm will take over the work- 
ing of the Whitworth Company. The effect of the union will be 
to largely destroy competition in the manufacture of quick-firing 
guns. In several departments of the work of the Elswick firm 
no competition has been felt from the Manchester Compan}^, but 
both firms have been makers of quick-firing guns for the British 
and foreign navies, and the competition in these weapons be- 
tween the two companies will now cease. The Elswick works 
at present are very busy, about 19,000 men being employed." 

The corporation in its early days was not in favor in England, 
and the feeling against it found frequent expression in the 
common law. In the United States similar hostility to corpora- 
tions was exhibited even down to the middle of the nineteenth 
century. Nevertheless, the corporation had to come whether the 
people fancied it or not, and whether the laws of the country 
gave free trade or protection to industry. The small corporation 
has had its day. It will always remain, but for large enterprises 
it has been superseded by those great aggregations of capital 
that, for want of a better term, are called "trusts." These com- 
binations are, after all, only corporations on a large scale. They 
are changed in size but not in form. It is the highest develop- 
ment of the centralization idea, manifested in capital and in- 
dustry. It is the evolution of modern commerce and trade. 

Trusts had their existence in England long before the Dingley 
tariff was framed, or became a law, and long before the enact- 
ment of the McKinley tariff of 1890. 

Present Trust Methods in England. 
A surface examination of the commercial methods of the 
United Kingdom does not reveal such a great change when 
contrasted with those of ten years ago, but an examination 



118 TRUSTS IN FREE TRADE ENGLAND. 

of the subject, more minutely shows how deep a root the same 
principle of amalgamation has struck into the business of the 
United Kingdom as well as that of the United States. In view 
of the importance, both commercial and financial, of the in- 
auguration of this new era in company promotion, it is well to 
bring vividly before the public the extent to which the new 
movement has alreadj r gone. 

The following table shows at a glance a list of some of the 
large combines recently formed in the United Kingdom: 

Number of 
Date of combination. businesses. Capital. 

Oct. 6, 1890— Salt Union, Ltd £2,000.000 

Nov. 1, 1890— United Alkali CompaDv. Ltd 43 6,000,000 

July 1, 1896— J. <fc P. Coats, Ltd . . . .' 4 5,500,000 

Nov. 25, 1897— Eng. Sewing Cottou Co.. Ltd 15 2,750,000 

May 6, 1898— Fine Cotton Spinners and Doublers, Ltd. 81 6,000,000 

Dec. 14, 1898— Bradford Dyers 22 4,500,000 

July 4, 1898— Yorkshire Indigo, Scarlet and Colour 

Dyers 11 600,000 

July 6, 1898— Bradford Coal Mchnts. & Consumers 8 250,000 

Oct. 9, 189,8— Yorkshire Wool Combers 38 2,500,000 

Nov. 1, 1898— United Indigo and Chemical 8 250,000 

Nov. 15, 1898— Textile Machinery Asso 170,000 

Dec. 8, 1898— Calico Printers 00 9,200.000 

Feb. 22, 1900— Wall Paper Manufacturers 28 4,200.000 

Mar. 1, 1900— United Velvet Cutters 4 300,000 

April 4, 1900— British Cotton & Wool Dyers 46 2,750,000 

Total 328 £46,970,000 

Here is a list, and it embraces only some of the largest trusts 
in free-trade England, in which there are 328 different business 
concerns amalgamated, with a capital of £46,970,000, or $230,- 
000,000. And there is not the shadow of an excuse to be found 
for their formation in the shape of a protective tariff. They are 
solely, thoroughh r , and absolutely the product of the English 
system of Cobdenite Free Trade, or a tariff for revenue only. 

Other trusts are freely talked of, and several are certain to 
see the prospectus stage. Trusts already projected are the 
bleachers of the Lancashire cotton trade, Bradford worsted 
spinners, woolen and worsted card manufacturers, and the 
shoddy manufacturers of Dewsbury. 

In a word, free-trade England has completely gone over to 
and become intoxicated with the trust mania. That such combi- 
nations of capital in that country are not the creations of a 
protective tariff is self-evident. 

A Free-Trade Trust — English Wall Paper Manufacturers Or- 
ganize a Combine. 

The following bit of news, contained in a recent cablegram 
from London, will be interesting to those who contend that Free 
Trade is the proper remedy for the trust evil: 

The English wall paper trust, forming since last September, is 
now complete, with a capital of $30,000,000. Practically every 
manufacturer in the United Kingdom is in the combination. 

As England already has Free Trade, and has had it for many 
years, the theorists there cannot throw the responsibility for 
the formation of the wall paper trust upon the tariff. 



The opponents, however, were in the minority, and the star 
of the republic did not set, and the Mighty West was brought 
under the flag of justice, freedom, and opportunity. — Presi- 
dent McKinley at Minneapolis, Oct. 12, 1899. 

These new questions are to be thought out and wrought 
out, not in a spirit of partizanship, but in a spirit of patriot- 
ism; not for the temporary advantage of one party or the 
other, but for the lasting advantage of the country. — Presi^ 
dent McKinley at Savannah, Ga., Dec. 17, 1898. 

No new-born zeal for American rights or the national honor 
from any quarter whatever can raise an issue with the Grand 
Old Party which fr forty years has steadfastly maintained 
it at home and abroad. — Maj. McKinley in an address before 
the Marquette Club, Chicago, Feb. 13, 1896. 



THE HAY-PAUNCEFOTE TREATY AND 
THE NICARAGUA CANAL. 

The extension of the jurisdiction of the United States in the 
West Indies and in the Pacific Ocean consequent upon the recent 
war with Spain has heightened the importance of shortening 
the communication between these two oceans and connecting 
the eastern and western coasts of our continental domain. An 
interoceanic canal across the isthmus of Central America has, 
therefore, recently commended itself to the Government of the 
United States with a force never before felt in the history of 
this country. 

While for many decades the commercial importance of such an 
interoceanic waterway has been realized by all thoughtful men, 
its construction as a national enterprise has not until recently 
commended itself to the people of the United States. Through- 
out the first half of the nineteenth century the prevailing 
thought of American statesmen was, that when, if ever, such 
an interoceanic canal should be constructed its unrestricted and 
equal use should be secured for the commerce of the United 
States. The territory through which this great waterway would 
pass by any of the available routes was in the possession of 
foreign powers incapable by themselves of conducting to a suc- 
cessful conclusion so vast an enterprise. The interests of the 
United States seemed, moreover, to be specially imperiled by 
the procedure of Great Britain in extending a protectorate over 
the Mosquito territory, claimed by the Republic of Nicaragua, 
including one of the termini of what was considered the most 
available interoceanic route. This protectorate, abandoned for 
a time by a treaty between Great Britain and Spain, was after- 
ward revived by extending over the Mosquito territory the su- 
perintendency of Belize, now known as British Honduras. The 
establishment of an English settlement at San Juan de Nicara- 
gua, to which the settlers gave the new English name of Grey- 
town, at the month of the San Juan river, — one of the termini 
of a canal across Nicaragua, — and the attempt to take possession 
of the surrounding country in opposition to the wishes of that 
Republic, in 1848, aroused the apprehensions of the Government 
of the United States, which perceived an intention on the part 
of the British Government to assume control over this inter- 
oceanic route. The construction of a canal across Nicaragua was 
for many reasons desired by the people of the United States, 
who had already formed a chartered company for this purpose 
and particularly in view of the annexation of Mexican territory 
by the treaty of Guadaloupe Hidalgo and the discovery of gold 
in California. 

The Clayton Bulwer Treaty. 

In these circumstances the convention known as the Clayton- 
Bulwer Treaty was negotiated by John M. Clayton, Secretary of 
State of the United States, and Sir Henry Lytton Bulwer, British 
Minister at Washington, and signed on April 19, 1850, having 
in view on the part of the American Government the prohibition 
of further colonization by Great Britain in Central American 
territory and the control of the proposed canal by that Power. 
The first article of this celebrated treaty binds the United States 
and Great Britain not to obtain or maintain any exclusive con- 
trol over the proposed ship canal, agreeing that neither will 
ever erect or maintain any fortifications commanding the same 
or colonize or assume or exercise any dominion over Nicaragua, 
Costa Rica, the Mosquito Coast or any other part of Central 
America. 

In the eighth article of this treaty the Governments of the 
United States and Great Britain declare their intention to es- 
tablish the "general principle" that neither the one nor the other 
is to extend its exclusive control over any other interoceanic 
communication whether by canal or railway, should any other 
trans-isthmian route ever prove more practicable than that of 
Nicaragua. 

119 



120 TlXE NICARAGUAN CANAL TREATY. 

By the conclusion of this convention — the Clayton-Bulwer 

Treaty — the two Governments intended to secure for the citi- 
zens of the United States and the subjects of Great Britain equal 
treatment in the use of the proposed waterway, leaving its con- 
struction to such private enterprise under the protection of both 
as might be induced to undertake so vast a work. 

When, therefore, the project of undertaking the construction 
of an interoceanic canal, to be owned and controlled by the 
Government of the United States, was recently brought forward 
for the consideration of Congress, the enterprise was known to 
be obstructed by this agreement of long standing and of clear 
import. The question had, indeed, been raised at various times 
and for different purposes as to the meaning, scope and validitj' 
of the Clayton-Bulwer Treaty. The diplomatic correspondence 
upon the subject during the past fifty years is extensive, but 
throughout it all no Secretary of State has ever proclaimed the 
non-existence or the formal denunciation of this treaty. The 
right or intention of the Government of the United States to 
undertake the construction of a trans-isthmian canal without 
regard to its treaties has never been declared by any act of 
Congress, by any Presidential message, or by any diplomatic 
note of any Secretary of State. 

In 1856, Mr. Cass, then Secretary of State, declared that "what 
the United States wants in Central America, next to the happi- 
ness of its people, is the security and neutrality of the inter- 
oceanic routes which lead through it." 

This sentence expresses the subsequent policy of the Govern- 
ment upon the subject, and the controversies which have arisen 
over the interpretation of the Clayton-Bulwer Treaty have never 
included a division of opinion on this point. In his message 
to Congress of December, 1860, President Buchanan reviewed 
the "discordant constructions" placed upon that treaty and 
affirmed that the negotiations of that period had "resulted in 
a final settlement entirely satisfactory to this Government." As 
Senator Davis, Chairman of the Senate Committee on Foreign 
Eelations, has said in a report adopted by that Committee: 

"The conclusion is unavoidable that the Government of the 
United States acknowledged, in 1860, that the Clayton-Bulwer 
Treaty was an obligatory convention and that it had been fully 
and satisfactorily executed on the part of Great Britain as to 
all the questions which, up to that time, had been controverted 
between the two Governments." 

In 1866 Mr. Seward, then Secretary of State, recognized the 
obligation of the Clayton-Bulwer Treaty in an instruction to 
Mr. Adams, Minister of the United States to Great Britain, by 
directing him to sound Lord Clarendon as to the disposition of 
his Government to favor the United States in acquiring coaling 
stations in Central America, "notwithstanding the stipulations 
contained in the Clayton-Bulwer Treaty." 

In 1873 Mr. Fish, as Secretary of State, in an instruction to 
General Schenck, Minister of the United States to Great Britain, 
directed him to remonstrate against British aggression upon 
Guatemala "as an infringement of the Clayton-Bulwer Treaty 
which will be very unacceptable to this Country." 

In 1881, Mr. Blaine, Secretary of State, in sin instruction to 
Mr. Lowell, Minister of the United States to Great Britain, 
proposes "some essential modifications in the Clayton-Bulwer 
Treaty," and desires that "a readjustment of the terms of the 
treaty may be reached in a spirit of amity and concord." The 
most "salient and palpable" of his objections to that conven- 
tion, "as it now exists," is "the fact that the operation of the 
treaty practically concedes to Great Britain the control of what- 
ever canal may be constructed." 

In 1883, Mr. Frelinghuysen, then Secretary of State, continu- 
ing the negotiations of Mr. Blaine, advanced an argument to 
show that the Clayton-Bulwer Treaty is "voidable" on two 
grounds: (1) because the first seven articles of the treaty relate 
to a particular canal by the Nicaraguan route only; and (2) 
because Great Britain has at the present day a colony instead 
of a settlement at Belize. 

In his reply Lord Granville, the British Minister of Foreign 
Affairs, controverted this argument and maintained that "the 
main feature of the policy which dictated the Clayton-Bulwer 



THE NICARAGUAN CANAL TREATY. 121 

convention was to prevent either Great Britain or the United 
States from being placed in a. position to exercise ea-cliisirc control 
in peace or war over any of the grand thoroughfares between the 
tiro oceans." 

Treaty Never Declared Void. 

Mr. Frelinghuysen never affirmed that the treaty was actually 
void and never proposed its actual abrogation. The negotiating, 
therefore, having failed of success, the correspondence upon this 
subject ceased. 

A treaty signed at Washington by Mr. Frelinghuysen and 
General Zavala, ex-President of Nicaragua, proposed the con- 
struction of a canal at the cost of the United States, providing 
for "equal tolls" for the vessels of all nations, except vessels of 
the contracting parties engaged in the coasting trade, but with- 
out stipulation for either neutralization or fortification. This 
treaty was submitted to the Senate of the United States Decem- 
ber 10, 18S4, but had not been ratified when, in the following 
March, President Cleveland withdrew it for re-consideration. 

In his annual message of 1885, President Cleveland said: 

"Whatever highway 'may be constructed across the barrier dividing the 
two greatest maritime areas of the world must be for the world's benefit. 
a trust for mankind, to be removed from the Chance of domination by 
any single power, nor become a point of invitation for hostilities or a 
prize for warlike ambition." 

Secretary Hay's Difficult Task. 

When, therefore, in 1899, Secretary Hay began negotiations 
with Great Britain for the purpose of modifying the Clayton- 
Bulwer Treaty "in a spirit of amity and concord," with a view 
to removing the obstacles which prevented the construction and 
control of an interoceanic canal as a national enterprise of the 
United States, he found himself by the records of the De- 
partment of State in the presence of the following facts: 

(1) The principle of neutralization had been the historic policy 
of the Government; (2) the United States had engaged not to 
construct or control an interoceanic canal as a national enterprise; 
and (3) the British Government had declared its unwillingness 
to modify the Clayton-Bulwer Treaty. In proposing to secure from 
Great Britain a renunciation of her treaty claims he, therefore, 
faced a most difficult and delicate task. His success in obtain- 
ing from Great Britain a renunciation of the equal status of 
that Government and the g'ranting of exclusive privileges to 
the United States, accorded by the treaty of February 5, 1900, 
was a notable triumph of American diplomacy. 

This last named convention, which will henceforth be known 
as the Hay-Pauncefote Treaty, secures from Great Britain the 
surrender of her own right to construct, own and control an 
interoceanic waterway, while explicitly according that right to 
the United States. It destroys the agreement which has been 
binding upon the two countries for half a century that neither 
will exercise an exclusive control, and accords to the Govern- 
ment of the United States "all the rights incident to such con- 
struction, as well as the exclusive right of providing for the 
reg-ulation and management of the canal." As Senator Davis has 
expressed it: 

"In the convention of February 5, 1900. Croat I.ritaln agrees that the 
restriction as to the exclusive control of Hie canal imposed by the Clay- 
ton-Bui wer Treaty shall continue to bind her, while the United States Is 
released from it. This leaves us free to acquire from Gofeta Rica a«d 
Nicaragua the exclusive control of the canal for the Government, or for 
our citizens under the protection of the United States, while it cuts Off 
Great Britain from any such right." 

As the engagement of Great Britain not to colonize in Central 
America or to extend her dominion over any part of it is not 
changed, the United States retains all the benefits which it 
ever derived from the Clayton-Bulwer Treaty, while all of the 
objections which have from time to time been brought against 
that convention have been removed. 

The critics of this treaty have thus far been able to discover 
but two grounds of objection: (1) that it concedes the complete 
neutrality of the proposed canal: and (2) that it secures only 
the right of police protection, without the privilege of fortifica- 
tion. 



122 THE NICARAGUA** CANAL TREATY. 

With regard to neutralization, this lias been the uniform and 
unchanging- policy of the United States Government from the 
very beginning-. It has never had any other thought or purpose 
than to open the interoceanic waterway to the equal use of all 
nations upon identical terms. 

As Mr. Clayton said in 1849: 

"The United States sought no exclusive privilege or preferential right 
of any kind in regard to the proposed communication, and their sincere 
wish, if it should be found practicable, was to see it dedicated to the 
common use of all nations on the most liberal terms and a footing of 
perfect equality for all. The United States would not, if thoy could, ob- 
tain any exclusive right or privilege in a great highway which naturally 
belonged to all mankind." 

From that time to the present, as Senator Davis has well said: 

"No American statesman speaking with official authority or responsi- 
bility has ever intimated that the United States would assume a control 
of this canal for the exclusive benefit of our Government or people. They 
hnve all with one accord declared that the canal was to be neutral ground 
in time of war and always open on terms of impartial equity to the ships 
and commerce of the world." 

With regard to the subject of fortification, before the failure 
to obtain that privilege is condemned it is necessary to show 
that it is at least desirable, if it were possible to secure it. 
From every point of view it may be contended that it is not. 
If the canal is to be considered as an object of attack, it is 
thereby exposed to all the dangers of offensive warlike opera- 
tions and, in order to save it from destruction, it must evidently 
be defended at a distance by the navies of the United States. 

If, on the other hand, it is by international agreement placed 
beyond a possibility of rightful or legal attack, the whole world 
is bound to respect its immunity and to protect its exemption. 
Admiral Dewey has expressed the opinion: 

"To fortify it would simply result in making it a battle ground in time 
of war; fortifications would be enormously expensive and ought not to be 
erected. Our fleets will be a sufficient guarantee of the neutrality and safety 
of the canal in time of war as well as in peace." 

There remains for consideration the question whether or not 
belligerent powers hostile to the United States should be per- 
mitted to enjoy the use of its waterway. The question is, how- 
ever, rather academic than practical; for in the case of war, 
it would be expected that the naval forces of the United States 
would concentrate upon this line of communication between the 
two oceans, and it is highly improbable that any hostile power 
would expose its vessels of war to the perils of entrance into 
and emergence from a narrow waterway policed by an enemy, 
especially in view of possible detention and practical withdrawal 
from naval utility. 

Clayton Bulwer Treaty not the Only Barrier. 

But in addition to the Clayton-Bulwer Treaty there are other 
barriers to the free exercise of the absolute will of the United 
States Government in the construction and control of am inter- 
oceanic waterway. It is not to be forgotten that the route 
of the Nicaragua canal passes through the waters and territories 
of a foreign and sovereign state, which has the same legal rights 
of jurisdiction over its own territory as those possessed by the 
United States within its own limits. In the absence of all treaty 
relations whatever the United States could not, without criminal 
aggression upon a sovereign power take possession of foreign 
territory and proceed to treat it as its own. In any acquisition 
of rights which this Government may make it must proceed in 
view of those sovereign prerogatives and those treaty obligations 
with which it finds itself face to face. By a treaty with Nica- 
ragua, signed on June 21, 1867, the United States agrees to 
extend its protection to any route of communication through the 
territory of Nicaragua between the Atlantic and Pacific oceans 
and to guarantee the neutrality and innocent use of the same. It 
also agrees to employ its influence with other nations to induce 
them to guarantee such neutrality and protection. On the other 
hand, in the treaty between Great Britain and Nicaragua, signed 
on February 11, 1S60, the Republic of Nicaragua grants to Great 
Britain and to British subjects and property "the right of transit 



THE NICARAGUA^ CANAL TREATY. 123 

between the Atlantic and Pacific oceans through the territories 
of that Republic on any route of communication, natural or ar- 
tificial, whether by land or water, which may now or hereafter 
exist or be constructed under the authority of Nicaragua, to 
be used and enjoyed in the same manner and upon equal terms 
by both parties and their respective subjects and citizens. This 
equality of transit rights includes any privilege as to the passage 
and employment of troops which may now or hereafter be 
granted to any other nation. The Government of Great Britain 
in return extends its protection to all such routes of communi- 
cation and gua ran Ices the neutrality and innocent use of the same. 

The Real Facts in the Case. 

From these conventions it results: (1) that the United States 
by her treaty with Nicaragua has agreed not to exercise any 
exclusive privilege in connection with the transit of the isthmus; 
(2) that Nicaragua has agreed not to grant any such exclusive 
privilege to the United States or to any other power; and (3) 
that Great Britain has agreed not to demand and not to permit 
any other power to enjoy such exclusive privileges. It is evident, 
therefore, that, if the Clayton-Bulwer treaty were not in ex- 
istence, the Government of the United States and every other 
foreign power is placed under limitations with respect to Nica- 
ragua which in effect amount to perfect neutralization as regards 
an interoceanic canal. 

When, therefore, the platform of the Democratic party, adopted 
at Kansas City, declares, "We condemn the Hay-Pauncefote 
Treaty as a surrender of American rights and interests not 
to be tolerated by the American people," this declaration is 
made either in abject ignorance of treaty obligations previously 
entered into by the United States, negotiated, maintained or de- 
fended b3 r representatives of that party, or it signifies a dispo- 
sition to repudiate or ignore the solemn contractual obligations 
of the United States. 

The Present Situation. 

Reviewing the entire history of negotiation and legislation 
ux>on the subject of an interoceanic canal, the following propo- 
sitions may be stated as beyond controversy: 

1. The Clayton-Bulwer Treaty was adopted in the application 
of the Monroe Doctrine to Central America, and in order to 
remove an imminent peril to the interests of the United States. 

2. That treaty was extant and operative on February 5, 1900, 
when the Hay-Pauncefote Treaty was signed, and up to that 
moment the Government of the United States was solemnly 
bound not to own or control a waterway between the Atlantic 
and Pacific oceans. 

3. The policj' of neutralization of such a waterway, by whom- 
soever constructed, has been from the beginning the policy of 
the United States. 

4. In continuance of this policy the Hay-Pauncefote Treaty 
absolves the United States from its obligations not to construct, 
own or control such an interoceanic waterway, and obtains for 
it the free consent of Great Britain to such construction and 
control, while Great Britain remains bound to observe all the 
provisions of the Clayton-Bulwer Treaty and renounces her right 
to construct and control such a waterway. 

5. The treaty relations of the Republic of Nicaragua with 
other powers limit her rig-hts of concession in such a manner 
that the Hay-Pauncefote Treaty secures all the rights and privi- 
leges to the United States which the Republic of Nicaragua is 
legally able to grant, until these treaty relations are terminated. 

In his Message of 1885, President Cleveland declared that an 
engagement combining the construction, ownership and opera- 
tion of an interoceanic canal by this Government such as the 
previous Republican Administration had proposed "would entail 
measures for its realization beyond the scope of our national 
policy or present means." 

Since its acceptance of this policy of opposition, the Demo- 
cratic party has made no utterance upon this subject other than 
the plank in the Kansas City platform, which reads: "We favor 
the immediate construction, ownership and control of the Nica- 



124 THE NICARAGUAN CANAL TREATY. 

raguan canal by the United States and we denounce the insin- 
cerity of the plank in the Republican platform for an isthmian 
canal in the face of the failure of the Republican majority to 
pass the bill pending- in Congress." 

There is in this statement no criticism of the attitude of the 
Republican party, whose platform declares, "We favor the con- 
struction, ownership, control and protection of an isthmian canal 
by the Government of the United States," and there seems 
nothing left as a basis of Democratic doctrine except the accu- 
sation of insincerity. Had the Republican majority in Congress 
concluded legislation upon the subject of an interoceanic canal 
before receiving- the report of the Walker Commission, authorized 
to determine the best route for such an interoceanic waterway, 
the Democratic party would, without doubt, have assailed it 
bitterly. As it is, the Republican party prudently and consist- 
ently awaits the report of the Commission appointed to deter- 
mine the best route for the "isthmian" canal, to which the party 
stands committed. In the meantime the Democratic party de- 
cides upon the "Nicaragua" route, without regard to the scien- 
tific report to be made as to its comparative merits, yet demands 
no condition of its construction not already secured by the Hay- 
Pauncefote Treaty, which it denounces without the pretense of 
a reason. That party displays its usual amount of financial 
sagacity in not only determining upon a particular route without 
reference to its relative cost; but, by definitely announcing its 
choice before securing the right of way, leaves the foreign owner 
to fix the price without regard to competition. 

The Republican party is pledged: (1) to the construction of 
a canal, (2) upon the best available route, (3) under the conditions 
most favorable to the Government of the United States. 

Upon these points the entire Administration is solidly united, 
and when the report of the Commission upon the most desirable 
route is made to Congress, it will be found that the necessary 
preliminary diplomatic arrangements for the construction of a 
canal have been fully accomplished. 

The utter hopelessness of Democratic antagonism to the policy 
and course of the Republican party on this subject is betrayed 
by its futile and cowardly charge of "insincerity" — the last re- 
sort of a briefless demagogue. 

Text of the KTicaraguan Canal Treaty. 

The United States of America and Her Majesty the Queen of the United 
Kingdom of Great Britain and Ireland, Empress of India, being desirous 
to facilitate the construction of a ship canal to connect the Atlantic and 
Pacific Oceans, and to that end remove any objection which may arise 
out of the convention of April 19, 1850, commonly called the Clayton- 
Bulwer treaty, to the construction of such canal under the auspices of 
the Government of the United States, without impairing the "general 
principle" of neutralization established in Article VIII of that conven- 
tion, have for that purpose appointed as their plenipotentiaries: 

The President of the United States, John Hay, Secretary of State of the 
United States, and Her Majesty the Queen of Great Britain and Ireland, 
Empress of India, the Right Hon. Lord Pauncefote, G. C. B., G. C. M. 
G., Her Majesty's Ambassador Extraordinary and Plenipotentiary to the 
United States; who, having communicated to each other tneir full powers, 
which were found to be in due and proper form, have agreed upon the 
following articles: 

"Article I. It is agreed that the canal may be constructed under the 
auspices of* the Government of the United States, either directly at its 
own cost, or by gift or loan of money to individuals or corporations, or 
through subscription to or purchase of stock or shares; and that, subject 
to the provisions of the present convention, the said Government shall 
have and enjoy all the rights incident to such construction, as well as of 
the exclusive right of providing for the regulation and management of 
the canal. 

"Art. II. The high contracting parties desiring to preserve and main- 
tain the 'general principle' of neutralization established in Article VIII 
of the Clayton-Bulwer convention adopt, as the basis of such neutraliza- 
tion, the following rules, substantially as embodied in the convention be- 
tween Great Britain and certain other powers, signed at Constantinople 
October 29, 1888, for the, free navigation of the Suez Canal; that is to say: 

"1. The canal shall be free and open, in time of war as in time of peace, 
to vessels of commerce and of war, of all nations, on terms of entire 
equality, so that there shall be no discrimination against any nation or 
its citizens or subjects in respect of the conditions or charges of traffic 
or otherwise. 

"2. The canal shall never be blockaded, nor shall any right of war be 
exercised nor any act of hostility be committed within it. 

"3. Vessels of war of a belligerent shall not revictual nor take any 
stores in the canal except so far as may be strictly necessary, and the 
transit of such vessels through the canal shall be effected with the least 
possible delay, in accordance with the regulations in force, and with only 



THE NICARAGUAN CANAL TREATY. 125 

such intermission as may result from the necessities of the service. 
Prizes shall be in all respects subject to the same rules as vessels of 
war of the belligerents. 

"4. No belligerent shall embark or disembark troops, munitions of war, 
nor warlike materials in the canal, except in case of accidental hindrance 
ot the transit, and in such case the transit shall be resumed with all 
possible despatch. 

"5. The provisions of this article will apply to waters adjacent to the 
canal, within 3 marine miles of either end. Vessels of war of a belligerent 
shall not remain in such waters longer than twenty-four hours at any 
one time except in case of distress, and in such case shall depart as sooii 
a« possible, but a vessel of war of one belligerent shall not depart within 
twenty-four hours from the departure of a vessel of war of the other 
belligerent. 

"6. The plant, establishments, buildings, and all works necessary to 
the construction, maintenance, and operation of the canal shall be deemed 
to be part thereof, for the purposes of this convention, and in time of 
war, as in time of peace, shall enjoy complete immunity from attack or 
injury by belligerents and from acts calculated to impair their usefulness 
as part of the canal. 

"7. No fortifications shall be erect- d commanding the canal or the 
waters adjacent. The United States, however, shall be at liberty to 
maintain such military police along the canal as may be necessary to 
protect it against lawlessness and disorder. 

"Art. III. The high contracting parties will, immediately upon the 
exchange of the ratifications of this convention, bring it to the notice of 
the other powers and invite them to adhere to it. 

"Art. IV. The present convention shall be ratified by the President of 
the United States, by and with the consent of the Senate thereof, and 
by Her Britannic Majesty; and the ratifications shall be exchanged at 
Washington or at London within six months from the date hereof, or 
earlier if possible." 

In faith whereof the respective Plenipotentiaries have signed this con- 
vention and hereunto affixed their seals. 

Done in duplicate at Washington, A. D. February 5, 1900. 

JOHN HAY. 
PAUNCEFOTE. 



The Philippines are ours, and American authority must be 
supreme throughout the archipelago; there will be amnesty- 
broad and liberal, but no abatemenet of our rights, no aban- 
donment of our duty.— President McKinley to Notification 
Committee, July 12, 1900. 

No terms until the undisputed authority of the United 
States shall be acknowledged throughout the archipelago! 
After that Congress will make a government under the sov- 
ereignty of the United States. — President McKinley at Mil- 
waukee, Wis., Oct. 16, 1899. 

We will fulfill in the Philippines the obligations imposed 
by the triumphs of our Army and the treaty of peace by in- 
ternational law, by the nation's sense of honor, and more than 
all by the rights, interests and conditions of the Philippine 
people themselves. — President McKinley to Notification Com- 
mittee, July 12, 1900. 

The boys who carry our flag in that distant sea will be sus- 
tained by the American people. It is the flag of our faith 
and our purpose; it is the flag of our love. It represents the 
conscience of the country, and carries with it, wherever it 
goes, education, civilization, and liberty. And let those lower 
it who will! — President McKinley at Evanston, 111., Oct. 17, 
1899. 

The obstructionists are here, not elsewhere. They may post- 
pone but they cannot defeat the realization of the high pur- 
pose of this nation to restore order to the islands and estab- 
lish a just and generous Government in which the inhabitants 
shall have the largest participation of which they are capable. 
— President McKinley to Notification Committee, July 12, 
1900. 

If, following the clear precepts of duty, territory falls to us, 
and the welfare of an alien people requires our guidance and 
protection, who will shrink from the responsibility, grave 
though it may beP Can we leave these people, who, by the 
fortunes of war and our own acts, are helpless and without 
government, to chaos and anarchy, after we have destroyed 
the only government they have had? — President McKinley at 
I Savannah, Ga., Dec. 17, 1898. 



THE CHINESE QUESTION. 

The recent events growing- out of the anti-foreign insurrections 
in China possess a national interest to the American people from 
three points of view: (1) They illustrate the necessity of a na- 
val and military base for the" protection of American life and 
property in the Far East and the value and availability of the 
Philippine Islands in that respect; (2) they furnish an example 
of the disposition of the Government of the United States to 
avoid international complications by pursuing" an independent 
course and the possibility of concurrent action, where coinci- 
dence of interest requires it, without the formation of European 
alliances; and (3) they show the moderation, prompt action and 
unselfish aims of the Government of the United States and com- 
pletely refute the fantastic conceptiou that the present Ad- 
ministration entertains purposes of aggression upon the territory 
of other nations. 

A brief statement compiled from official telegrams regarding 
the action and policy of the Government in relation to the dis- 
turbances in China may prove useful. 

The origin and development of the anti-foreign movement in 
China were indicated from time to time in the dispatches of 
Minister Conger prior to March 9, 1900. On that date Mr. Conger 
telegraphed : 

"Missionary troubles still spreading. The situation very critical. The 
Ministers of England, France, Germany, Italy and the United States 
to-day sent to the Foreign Office an Identical note demanding the publi- 
cation of a strong Imperial decree without delay. If Chinese Government 
absolutely refuse and the situation does not materially improve, I advise 
that a naval demonstration by war vessels of each Government should be 
made in north Chinese waters. My colleagues have telegraphed their 
Governments similarly." 

On May 26 Mr. Conger requested permission to confer with 
Admiral Kempff with reference to sending a guard of marines 
for his legation, which he was directed to do, if the safety of the 
legation seemed to him to require it. 

On May 29 he informed his Government as follows: 

"Boxers increasing. Nine Methodist converts brutally murdered at Pa- 
chow. The movement has developed into open rebellion. Chinese Gov- 
ernment is trying, but apparently is unable to suppress it. Many soldiers 
disloyal. Several railroad bridges and stations near Peking burned. 
Legations have ordered guards." 

The Tien-Tsin Action. 

On May 30 Admiral Kempff informed the r\avy Department 
that one hundred men had been landed and sent to Tien-tsin the 
previous day, fifty of whom were on their way to Pekin. These 
marines were landed and sent to Pekin with the consent of t he- 
Chinese authorities, as shown by the Admiral's telegram of June & 
On the 6th the Tien-tsin-Pekin Railway was cut, nine hundred 
men of the international forces, including one hundred Ameri- 
can, being then on shore. On the 11th the Admiral reported the 
situation as "serious," proposed the relief of the Americans whj 
were cut off by destruction of the railway, and requested a bat- 
talion of marines from Manila, which was ordered by the Navy 
Department. On the 13th, 2,500 men of different nations were 
reported as on their way to Pekin for the relief o£ the legations 
with the permission of the Ticcroy of Tien-tsin. On the 17th the 
following telegram was sent by Commander Taussig from Che- 
foo: 

"Taku forts fired upon foreign vessels about 1.45 a. m., June 17. Sur- 
rendered to the united forces at 8 a. m." 

In this action Admiral Kempff, averse to firing on the Chinese 
forts and not being instructed to do so, took no part; but, after 
learning that the "Monocacy" had been struck, he "immediately 
ordered concerted action with the foreign nations.*" 

Almost coincident with the firing on the foreign vessels b} T 
the Taku forts were the assassination of the German Minister in 
the streets of Pekin and the armed attack on the foreign lega- 
tions. 

126 



THE WAR IN CHINA. 127 

The Viceroys of Nanking- and Hn Nan, having- represented to 
this Government that they were able and determined to preserve 
order and prevent outrages upon foreigners in their respective 
provinces, Secretary Hay replied, on June 22, that "the Govern- 
ment of the United States has no disposition to send either mil- 
itary or naval forces into any Chinese provinces where the Gov- 
ernment shows its ability and its determination to preserve or- 
der and to protect foreign ers in their lives and their rights." 

This expression was also communicated to the chief powers of 
Europe. 

Troops Sent from Manila. 

The condition of anarchy which prevailed in Northern China 
and the desperate circumstances in which the American legation 
and American citizens resident there w r ere placed, necessitated 
the immediate reinforcement of the United States marines by 
troops sent from Manila*, and preparations were made for such 
further measures as the protection of American life and property 
might require. 

The United States Declares Its Attitude. 
In order, however, that the attitude and intention of the Uni- 
ted States might be fully understood at home and abroad, the 
following circular was issued by Secretary Hay and cabled to our 
diplomatic representatives in the principal countries of Europe: 

Department of State, Washington, July 3, 1900. 

In this critical posture of affairs in China, it is deemed appropriate to 
define the attitude of the United States as far as present circumstances 
permitthis to be done. We adhere to the policy initiated by us in 1857 
of peace with the Chinese nation, of furtherance of lawful commerce and 
of protection of lives and property of our citizens by all means guaran- 
teed under extra-territorial treaty rights and by the law of nations. If 
wrong be done to our citizens we propose to hold the responsible authors 
to the uttermost accountability. 

We regard the situation at Peking as one of virtual anarchy, whereby 
power and responsibility are practically devolved upon the local pro- 
vincial authorities. So long as they are not in overt collusion with rebel- 
lion and use their power to protect foreign life and property we regard 
them as representing the Chinese people, with whom we seek to remain 
in peace and friendship. The purpose of the President Is, as it has been 
heretofore, to act concurrently with the other Powers, first, in opening up 
communication with Peking, and rescuing the American officials, mis- 
sionaries and other Americans who are in danger; second, in affording all 
possible protection everywhere in China to American lire and property; 
third, in guarding and protecting all legitimate American interests, and 
fourth, in aiding to prevent a spread of the disorders to the other 
provinces of the Empire and a recurrence of such disasters. 

It is, of course, too early to forecast the means of attaining this last 
result, but the policy of the Government of the United States is to seek 
a solution which may bring about permanent safety and peace to China, 
preserve Chinese territorial and administrative entity, protect all rights 
guaranteed to friendly Powers by treaty and international law, and safe- 
guard for the world the principle of equal and impartial trade with all 
parts of the Chinese Empire. 

You will communicate the purport of this instruction to the Minister 
for Foreign Affairs. 

In this definition of purpose and policy all the great Pow r ers 
have expressed their concurrence with more or less formality, 
but with substantial unanimity. 

The protestations of sincere friendship on the part of the 
Chinese Government towards the United States, expressed 
through Minister Wu to the Secretary of State, prompted the 
latter on July 20th, to say in a note to that official : "I should be 
greatly obliged if you would communicate with some of the 
leading officials of China, to whose friendly services we are 
already greatly indebted, and invite from them some sug-gestion 
as to the manner which they may think practicable to co-operate 
with us in effecting the rescue of our friends in Peidng." 

Minister Wu in answer to this declared to the Secretary that 
he believed his Government would do all in its power to co- 
operate with the United States to this end. 

In pursuance of this the Chinese Minister communicated with 
his Government on the subject, and the Emperor of China ad- 
dressed the following communication to the President of the 
United States: 

Translation of a telegram received by Minister Wu on July 
20th, 1000, from the Taotai of Shanghai, dated July 19th, 1900. 

Have received a telegram from Governor Yuan (of Bhaagtong) dated 
23d day of this Moon (July 19th), who having received from the Privy 



128 THE WAR IN CHINA. 

Council (at Peking) a despatch embodying an Imperial Letter to the 
President of the United States has instructed me to transmit it to 
Your Excellency. The Imperial message is respectfully transmitted as 
follows: 

THE EMPEROR OF CHINA 
TO 

HIS EXCELLENCY THE PRESIDENT OP THE UNITED STATES 
GREETING: 

China has long maintained friendly relations with the United States 
and is deeply conscious that the object of the United States is inter- 
national commerce. Neither country entertains the least suspicion or 
distrust towards the other. Recent outbreaks of mutual antipathy be- 
tween the people and Christian missions caused the Foreign Powers 
to view with unwarranted suspicion the position of the Imperial Gov- 
ernment as favorable to the people and prejudicial to the missions, with 
the result that the Taku Forts were attacked and captured. Conse- 
quently there has been clashing of forces with calamitous consequences. 
The situation has become more and more serious and critical. We have 
just received a telegraphic memorial from Our Envoy Wu Ting-fang, 
and it is highly gratifying to Us that the United States Government, 
having in view the friendly relations between the two countries, has 
taken a deep interest in the present situation. Now China, driven by 
^the irresistible course of events, has unfortunately incurred well-nigh 
universal indignation. For settling the present difficulty, China places 
special reliance in the United States. We address this message to Your 
Excellency in all sincerity and candidness with the hope that Ypnr 
Excellency will devise measures and take the initiative in Drlnging about 
a concert of the Powers for the restoration of order and peace. The 
favor of a kind reply is earnestly requested, and awaited with the 
greatest anxiety. 

Kwaiighsu 26th year 6th Moon 23d day (July 19th, 1900). 

It is, therefore, my duty to transmit the above with the request that 
Your Excellency, in respectful obedience of Imperial wishes, will deliver 
the same to its high destination and favor me with a reply. 

YU LIEN-YUEN. 
(Taotai at Shanghai.) 
Kwanghsu 26th year 6th Moon 23d day (July 19th, 1900.) 

To this communication the President of the United States addressed 
the following answer: 

THE PRESIDENT OF THE UNITED STATES 
TO THE EMPEROR OF CHINA 

GREETING: ) 

I have received your Majesty's message of the 19th of July, and I 
am glad to know that Your Majesty recognizes the fact that the Gov- 
ernment and people of the United States desire of China nothing but 
what is just and equitable. The purpose for which we landed troops 
in China was the rescue of our legation from grave danger, and the 
protection of the lives and property of Americans who were sojourning 
in China in the enjoyment of rights guaranteed by treaty and by inter- 
national law. The same purposes are publicly declared by all the 
Powers which have landed military forces in vour Majestv's Empire. 

I am to infer from your Majesty's letter that the malefactors who 
have disturbed the peace of China, who have murdered the Minister 
of Germany, and a member of the Japanese Legation, and who now 
hold besieged in Peking those foreign diplomatists who still survive, 
have not only not received any favor or encouragement from your 
Majesty, but are actually in rebellion against the Imperial authority. 
If this be the case, I most solemnly urge upon vour Majesty's Govern- 
ment to give public assuranee whether the foreign ministers are alive, 
and, if so, in what condition. 

2. To put the diplomatic representatives of the Powers in immediate 
and free communication with their respective governments and to re- 
iiiove all danger to their lives and liberty. 

3. To place the Imperial authorities of China in communication with 
the Relief Expedition so that the co-operation may be secured between 
them for the liberation of the Legations and the protection of for- 
eigners and the restoration of order. 

If these objects are accomplished it is the belief of this Government 
that no obstacles will be found to exist on the part of the Powers to 
an amicable settlement of all questions arising out of the recent 
troubles and the friendly good offices of this Government will, with the 
asseiit of the other Powers, be cheerfully placed at your Majesty's dis- 
position for that purpose. • 

william Mckinley. 

July 23, 1900. 

Bv the President: 

JOHN HAY, 
Secretary of State. 

As further setting forth the attitude of the United States 
Government respecting- the situation in China, and covering 
the sugg-estion of Li Hung Chang that the Ministers might 
oe sent under safe escort to Tientsin provided the powers would 
engage not to March on Pekin, the Secretary. of State replied 
on July 30th, as follows: 

"The Government will not enter into any arrangement regarding dis- 
position or treatment of legations without first having free communica- 
tion with Minister Congfrr. Responsibility for their protection rests 
n nod Chinese Government. Power to deliver at Tientsin presupposes 
power to protect and to open communication, This is insisted on," 



THE WAR IN CHINA. 120 

This message was delivered by Mr. Goodnow on the 31st to 
Viceroy Li, who then inquired whether, "if free communication 
were established between ministers and their governments, it 
could be arranged that the powers should not advance on Pekin 
pending negotiations." 

To this inquiry the following reply was sent on the 1st of 
August: 

"GOODNOW, 

"Consul General, Shanghai. 
"I do not think it expedient to submit the proposition of Earl Li 
to the other powers. Free communication with our representatives in 
Pekin is demanded as a matter of absolute right, and not as a favor. 
Since the Chinese Government admits that it possesses the power to 
give communication, it puts itself in an unfriendly attitude by denying 
it. No negotiations seem advisable until the Chinese Government shall 
have put the diplomatic representatives of the powers in full and free 
communication with their respective governments and removed all 
danger to their lives and liberty. We would urge Earl Li earnestly to 
advise the Imperial authorities of China to place themselves in friendly 
communication and co-operation with the relief expedition. They are 
assuming heavy responsibility in acting otherwise. 

(Signed) "HAY." 

You will communicate this information to the Minister of Foreign 

Affah '*- HAY. 

The Secretary of State, August 1st. informed Minister Wu 
that he sent the above telegram to Consul General Goodnow 
at Shanghai : 

"I beg that you will use your best endeavors to impress upon Earl 
Li the importance and urgency of the communication Mr. Goodnow Is 
directed to make to him." 

In compliance with the demand made by the President, the 
Chinese Government managed to send for Minister Conger a 
telegram in the Department of State cipher from Tsinan Yamen. 
a large city south of Pekin, dated August 7th, which reads: 

"Still besieged. Situation more precarious. Chinese Government in- 
sisting upon our leaving Pekin which would be certain death. Rifle firing 
upon us daily by Imperial troops. Have abundant eourage but little 
ammunition or provisions. Two progressive Yamen Ministers beheaded. 

All connected with Legation of the United Starrs well at the present 
moment." 

On August 8th the following telegram was sent to the Chinese 
Government by the State Department: 

"We are availing ourselves of the onnorf unitv offered us bv the im- 
perial edict of the 5th of August alloying to the foreign ministers free 
communication with their respective governments in cipher, and have 
sent a communication to Minister Conger, to which we await an answer. 
'We are already advised by him. in a brief despatch, received August 
7. that Imperial troops are firing daily upon the ministers in Pekin. 
We demand the immediate cessation of hostile attacks bv imperial troops 
upon the legations, and urge the exercise of every power and enerffv 
of the imperial government for the protection of the legations and all 
foreigners therein. 

"We are also advised by the same despatch from Minister Conger 
that, in his (minion, for the foreign ministers to leave Pekin as pro- 
posed in the edict of August 2 would be certain death. In view of 
the fact that the imperial troops are now firing upon the legations. 
and in view of the doubt expressed by the imperial government in its 
edict of August '2 as to its power to restore order and secure absolute 
safety in Pekin. it is evident that tins approb.ensiou is well founded, 
for if your government cannot protect our Minister in Pekin. it will 
presumptively be unable to protect him upon a journey from Pekin to 
the coast. 

"We therefore urge upon the imperial government that it shall adopt 
the course suggested in the third clause of the letter of the President 
to His Majesty the Emperor of China, of July ?3. 1000, and enter into 
communication with the relief expedition so that co-operation may be 
secured between them for the liberation of the legations, the protection 
of foreigners and the restoration of order. Such action on the" part of 
the imperial government would be a satisfactory demonstration of its 
friendliness and desire to attain these ends. 

(Signed) "ALYEY A. ADEE, 

"Acting Secretary. 

"Department of State, Washington.. Aug. S. 1900." 

In this age of frequent interchange and. mutual dependence, 
we cannot shirk our international responsibilities if we would; 
they must be met with courage and wisdom, and we must fol- 
low duty even if desire opposes. — President McKinley at 
Cmaha, Oct. 12, 1898, 



THE BOER WAR AND THE ALLEGED 
ALLIANCE WITH GREAT BRITAIN. 

Persistent attempts have been made to inflame the public 
mind ag-ainst the President and his advisers by the assertion that 
he has failed to take such steps as he might with propriety have 
taken in favor of a cessation of hostilities in South Africa and in 
support of the Boer Republics. Upon this question the President 
said in his message of December 5, 1899, that 'this Government 
has maintained an attitude of neutrality in the unfortunate con- 
test between Great Britain and the Boer States of Africa, and we 
have remained faithful to the precept of avoiding entangling al- 
liances as to the affairs not of our own concern. Had circum- 
stances suggested that the imrties to the quarrel would have 
welcomed any kindly expression of the hope of the American 
people that the war might have been averted good eihces would 
have been gladly tendered." Just three months later that oppor- 
tunity which he said in his message would have been gladly 
acted upon was offered. On March 10, 1900, Consul Hay tele- 
graphed from Pretoria: "I am officially requested by the Govern- 
ment of the Republics to urge your intervention with a view 
to cessation of hostilities; same request made to representatives 
of European powers." This telegram offered the opportunity 
for which the President had expressed his desire in the message, 
and a telegram was instantly sent to our Ambassador to Great 
Britain expressing the earnest hope that a way to bring about 
peace could be found, and stating that the President would be 
glad to aid in a friendly manner to promote this result. This 
statement was promptly communicated to Lord Salisbury and in 
answer the Ambassador was requested to thank the President 
for the friendlj- interest shown; but Lord Salisbury added that 
Her Majesty's Government could not accept the intervention 
of any power. The details of this incident were stared by Secretary 
Hay to the Boer delegates who visited Washington in May, 1900, 
and they were also reminded that, although the request for inter- 
vention was simultaneously made to all nations having represent- 
atives at Pretoria, the United States was the only one which acted 
upon that request. Regarding the assertion that the Hague Peace 
Convention gave authority for active intervention, Mr. Hay on this 
occasion said: "That convention specifically states that 'powers 
strangers to the dispute may have the right to offer good offices 
or mediation,' but ' the fvmotiona of the mediator are at an end when once 
it is declared by either one of the parties to the dispute that, the means of recon- 
ciliation proposed are not accepted.' " Mr. Hay added that " the Presi- 
dent sympathizes heartily in the sincere desire of all the people of 
the United States that the war which is now afflicting South Africa 
may, for the sake of both parties engaged, come to a speedy close ; 
but having done his full duty in preserving a strictly neutral posi- 
tion between them and in seizing the Jirst opportunity that presented itself 
for tendering his good office* in tlie interests of peace, he feels that 
in the present circumstances no course is open to him except 
to persist in the policy of impartial neutralit\r. To deviate from 
this would be contrary to all our traditions and all cur national 
interests, and would lead to consequences which neither the 
President nor the people of the United States could regard with 
favor." 

This statement evidently produced a very strong impression, 
not only upon the minds of the Boer representatives, who have 
had only the kiudest words for the President and Secretary Hay 
since that occasion, but also upon the minds of the people, the 
only persons insisting upon further action since that declaration 
being those who are clearly doing .so for partisan purposes only. 
Secretary Hay's statement made to the Boer delegates follows. 
Regarding the frequently repeated charge that a secret alliance 
exists between the United States Government and that of Great 
Britain — a charge made clearly for political effect — Secretary 
flay in a letter to Hon. Charles Dick, dated September 11, 1899, 
mid published in full on page 100, snid: "The people who mahe 
this charge know it to be untrue: their making - it is an insult to 

130 



THE BOER WAR. 131 

the intelligence of those whose votes they seek by this gross 
misrepresentation. But as one of their favorite methods of 
ca'mpaig-n is to invent a fietion too fantastic for contradicrion and 
then assume it to be true because it has not, been contradicted, 
you may permit me to dispose of this ghost story, as it refers 
( >i the Department with which I am connected, there is no alliance 
with EiKjhind nor with any power under heaven nor any agreement ex'cep those 
knottm and published toihe world — the treaties of ordinary international 
friendship for purposes of business a ad c< unmerce. No treaty other than 
this exigt&i nonr has been suggested on rill, it s;d,' ■■ unii:: ii in <onlrin/>/a(i<rit. It 
has never entered into the mind of the President nor of any member 
of the Government to forsake, under any inducement j the wise pre- 
cept and example of the fathers which forbade entangling alliances 
with European powers." 



Our flag" has been assailed in those distant islands in the 
Pacific, and I ask the people of Iowa whether we shall not 
stand firmly and unitedly until American sovereignty shall 
be established in every island of the archipelago. — President 
McKinley at Waterloo, la., Oct. 16, 1899. 

The islands came to us. It was no responsibility we sought, 
but it was a responsibility put upon us. Will the American 
people shirk it? Have the American people ever been known 
to run away from a high moral duty? — President McKinley 
at Youngstown, 0., Oct. 18, 1899. 

The splendid victories we have achieved would be our eter- 
nal shame and not our everlasting glory if they led to the 
weakening of our original lofty purpose, or to the desertion 
of the immortal principles on which the national government 
was founded.— President McKinley at Chicago, Oct. 19, 1893. 

Shall we distrust ourselves, shall we proclaim to the world 
our inability to give kindly government to oppressed peoples 
whose future by the victories of war is confided to us? We 
may wish it were otherwise, but who will question our duty 
now? — President McKinley at Savannah, Ga., Dec. 17, 1898. 

Our soldiers carrying our flag in Luzon will be supported by 
the people of the United States [continued applause], and 
hostilities will stop in that distant island of the sea when 
the men who assaulted our flog and our soldiers shall lay 
down their arms. — President McKinley at Cleveland, 0., Oct. 
18, 1899. 

It is not possible that seventy-five millions of American 
freemen are unable to establish liberty and justice and good 
government in our new possessions. [Continued applause.] 
The burden is our opportunity. The opportunity is greater 
than the burden. — President McKinley to Ohio Society of New 
York, March 3, 1900. 

Never was a people so united in purpose, in heart, in sym- 
pathy, and in love as the American people to-day. One thing 
yet is left for us to do, and that is to remain shoulder to 
shoulder until there shall be secured in fie treaty of peace 
all the fruits of this great war. — President "JlcKinley at Gales- 
burg, 111., Oct. 13, 1898. 

We are in the Philippines. Our flag is there; our boys in 
blue are there. They are not there for conquest; they are 
not there for dominion. They are there because, in the prov- 
idence of God, who moves mysteriously, that great archipelago 
has been placed in the hands of the American people.— Presi- 
dent McKinley at Youngstown, 0., Oct. 18, 1899. 

Although hostilities have been suspended, we are confronted 
with the gravest national problems. It is a time for the so- 
berest judgment and the most conservative and considerate 
action. As we have stood together in the war, so we must 
stf nd together until the results of that war shall be written in 
peace. — President McKinley at Carroll, la., Oct. 11, 1898. 



COLONIES AND COLONIZATION. 

Some Lessons From the Experiences of Other Peoples and 
Other Nations — A Plain Statement of the Effect of Coloni- 
zation Upon the People Affected and Upon the Governing 1 
Nation. 

An unexpected incident of the war with Spain, a war of hu- 
manity, undertaken at the demand of all classes of our people 
irrespective of party, brought under the control of the United 
States the Philippine Islands, the Island of Guam, and the Island 
of Porto Eico, while other events have also brought other islands 
of the Paciiic under the control and care of the United States 
Government; and for the present we are also charged with the 
direction of affairs in Cuba. 

It is proper, then, that we study, as far as we may, the methods 
by which the older nations and those of long- experience in the 
management of noncontiguous territory govern such territory 
and administer that government in the manner for the best in- 
terests of the people governed, and incidentally best for the 
nation which governs and thus becomes responsible for that 
government. 

The World's Colonies. 

An official publication of the Treasury Department, issued 
some months ago, discussed in detail the colonies of the world, 
and its accuracy and fairness has never been called in question. 
It shows that the colonies, protectorates, and dependencies of 
the world number 126. They occupy two-fifths of the land sur- 
face of the globe and their population is one-third of the entire 
people of the earth. Their total imports average $1,500,000,000 
worth of g"oods annually, and of this vast sum more than 10 
per cent is purchased from the mother country. Of their ex- 
ports, which considerably exceed imports, 40 per cent goes to 
the mother country. Large sums are annually expended in the 
construction of roads, canals, railways, telegraphs, postal ser- 
vice, schools, etc., but in most cases the present annual expend- 
itures are produced by local revenues or are represented by 
local obligations. The revenues of the British colonies in 1897 
were $755,000,000 and their expenditures $745,000,000. While the 
public debt in the more important and active of these commu- 
nities aggregates a large sum, it is represented by canals, rail- 
ways, public highways, harbors, irrigation, and other public im- 
provements intended to stimulate commerce and production, the 
railroads in operation in the British colonies alone aggregating 
55,000 miles, and in no instance assumed by or a charge upon 
the mother country. 

Of the 126 colonies, protectorates, dependencies, and "spheres 
of influence," which rnake up the total list, two-fifths belong to 
Great Britain, their area (including the native feudatory states 
of India) being one-half of the grand total of colonial territory 
and their population considerably more than one-half the grand 
total of colonial population. France is next in order in number, 
area, and population of colonies, etc., though the area controlled 
by France is but about one-third that of Great Britain, and the 
I>opulation of her colonies less than one-sixth of those of Great 
Britain. Commerce between the successful colonies and their 
mother countries is in nearly all cases placed upon practically 
the same basis as that with other countries, goods from the home 
countries receiving in the vast majority of cases no advantages 
over those from other countries in import duties, and other 
exactions of this character. 

In this particular we have given to Porto Eico and Hawaii 
vastly better treatment than is usual with colonies, since we 
make the rate of duty on commerce between Porto Pico and 
the United States but 15 per cent of that with other countries, 
and even that but temporary, while in the case of Hawaii, which 
voluntarily asked admission, we have enlarged the freedom of 
interchange which already existed under reciprocity and given it 
absolute freedom of trade with all parts of the country, as Porto 
Eico will have within a comparatively short time. 

132 



EFFECT OF COLONIZATION UPON THE PEOPLE OF THE 
COUNTRIES COLONIZED. 

First to discuss the effect of "colonization," so called, upon 
the countries colonized, and the people and interests of those 
countries. The tendency has been to look at the question first 
from the selfish standpoint of its effect upon our own commerce 
and people; but it is proper first to determine the effect of 
judicious, proper, and humane colonial control upon the people 
controlled. The following- statement upon this subject, by the 
Chief of the Bureau of Statistics, in the "Forum" in January, 
1900, has never been called in question as to accuracy or fairness: 

To answer the question whether the people of the territory colonized 
are advantageously affected, the inquiry must be conducted along broader 
lines than those of mere commerce. The questions which would naturally 
determine the benefit or the injury which colonization brings to the people 
of the territory colonized are: (1) Whether a more permanent and stable 
form of government is given them; (2) whether control by the colonizing 
country brings with it improved internal conditions; (3) whether the pro- 
ducing capacity of the country is increased; (4) whether commercial in- 
tercourse with other parts of the world is quickened, and (5) whether en- 
larged intercourse with the outside world proves advantageous. 

That local improvements along all these lines has followed successful 
colonizing enterprises, especially in the tropical and subtropical terri- 
tories, is well recognized. Those who have observed tne developments 
in the past few years in various parts of the world can not doubt that 
advantages have come in at least a majority of the cases. No one who 
has followed the course of events in Africa and witnessed the develop- 
ments which, under various nations, have brought order out of disorder, 
peace among warring native tribes, the opening of the great rivers, the 
construction of roads, the building of railways and telegraphs, the intro- 
duction at initial points of educational facilities, and the development of 
commerce and general intercourse with the world can doubt the ad- 
vantages to the people occupying the territory; while the vast supplies 
of tropical products, and of precious stones and metals, which Africa is 
now contributing to the commercial world, show that the advantages are 
reciprocal. The improvements now made under French rule in Indo-China 
— the building of roads and of railways, the introduction of modern civili- 
zation and business communication— illustrate in another part of the 
world the advantages to the population of the territory colonized. 

Probably the most striking example of Xne advantages accruing to 
a population from a government supplied by experienced people of 
other blood and climate is in the case of India. From the very begin- 
ning of British control there came a gradual cessation of the bloody and 
devastating wars— between native rulers or by foreign invaders — which 
had sacrificed so many lives and destroyed cities and homes from the 
earliest history of that great and densely populated peninsula. 

With this, and especially with the direct British control of the last half 
century, came other improvements. One of the first improvements under- 
taken was the construction and maintenance of roads. "No native prince 
In India ever built a road," says a distinguished writer on the history and 
conditions of that country: and when the British Government assumed 
control, it found communication between the various sections almost im- 
possible, by reason of an absence of routes of travel over which vehicles 
could pass. Now there are 150,000 miles of roads in India maintained by 
the government, of which no less than 35,000 miles are "metalled," or 
macadamized, as the term is used in this country. In 1854, there were in 
India 21 miles of railway, and in 1S99, 22,000 miles— uniting province with 
province, city with city, penetrating" the native states, bringing them into 
closer relationship with the territory under direct control of the British 
Government, carrying the native products to the seaboard, and in turn 
bringing to the natives the products of other parts of the world and 
proving especially useful in distributing supplies in famine years. 

In 1897 the net earnings of the railways in India were 130.000,000 
rupees, being an average of 5.04 per cent on the capital invested. The 
number of passengers carried in 1898 was 150.374.114. In nearly all cases 
these railways are the result of investment of British capital, induced by 
a guaranty of interest made by the government of British India. In 185fi 
there were in all of India only 753 post-offices and letter boxes; in 1808 
there were 27,984. In that year the postal system handled 476,683,000 
pieces of mail, the revenue of the postal service being 18,323,000 rupees, 
and the charges 13,271,000 rupees; supplying a service of which Sir Jolvi 
Strachey, who has spent nearly thirty years in India, says: "There is no 
country where the rates of postage are so low or the offices better man- 
aged." In addition to the postal service there are over 50,000 miles of 
telegraph lines, which in 1898 handled 5,713,000 paid messages. 

Still another of the great internal improvements which has proved of 
inestimable value to the people in times of great distress is the system of 
irrigating canals. Sir John Strachey says: "Altogether there are in India, 
under the management or supervision of the British Government, some 
36,000 miles of canals and other works irrigating nearly 14,000,000 acres." 
"These canals," he adds, "yielded, in 1876, 5% per cent on their cost of 
320,000,000 rupees, and this falls far short of the annual value of the 
crops they protect. In the single year of 1891-92 the estimated value of 
the produce of the land irrigated by works constructed by the government 
was more than 540,000,000 rupees."* The value of these great irrigating 
works can only be appreciated when it is remembered that in certain 
years of drought the area which they supply would be absolutely non- 

*The exchange value of the rupee ranged between 47 and 50 cents prior 
to 1870; since that time it has steadily declined, and averaged In 1898-99, 
32.4 cents, while the bullion value in 1898-99 was about 21 cents. 

• 133 



134 COLONIES AND COLONIZATION. 

productive, and that in a single year of drought the value of the crops 
grown far exceeds the entire cost of the cauals which supply the territory- 

Another equally interesting and important result of British control in 
India is found in the increased educational facilities now offered to the 
people. The system of educating the masses began in 1804, when the de- 
partment of public instruction was established, the government allow- 
ance for the purpose being, in 1858, but 394,000 rupees, increased by is; 17 
to 35,250,000 rupees. In 1S97-98 the number of schools in India was 
150,000, with an attendance of 4,285,000 pupils. Of these 100,527 were 
public schools, with an attendance of 3,706,000, 

Regarding the commercial advantages which have followed the estab- 
lishment of order, the creation of highways and methods of internal trans- 
portation, the construction of irrigating canals, and the general stimula- 
tion and activity, it may be said that the exports of merchandise 
British India have grown from $64,784,000. in 1S48. to SolU.OOO.OOO in 1897, 
making India how the sixth exporting country of the world. The in- 
creased earning and consuming capacity of the people meantime is indi- 
cated, in some degree at least, by the fact that the imports have grown 
from $41,842,000, in 1848, to $240,000,000 in 1897, 

Regarding the standing army in India of 225,000 men. of which we 
hear so much, when we consider the service it performs. ;ind its relative 
size as compared with the area and population of the territory in which 
it maintains order and prevents possible invasion by other nations, it 
dwindles into comparative insignificance. Of its 225,000 officers and men. 
one-third are Europeans and two-thirds are natives of India. When this 
number is compared with the population of the Indian Empire and Feuda- 
tory States, it will be found that there are less than 250 Europeans and 
500 natives employed iu the military service for each million people. The 
entire expense of the army — whether natives or Europeans, privates or 
officers of high rank— is borne not by the Government of the United 
Kingdom, but by the Indian government. 

On the subject of expense of the Indian colony to the home Government. 
It is not improper again to quote Sir John Strachey, whose lifetime of 
experience in India, in various branches of the public service, renders 
him a valuable authority. In his recent work upon India he says: "India 
has become one of the greatest powers of the world, and so far as her 
finances are concerned, she has no dependence upon Great Britain. This 
country (United Kingdom) does not contribute a single farthing to the 
maintenance of Eer Indian Empire. For all the work that she under- 
takes for India, whether it be for the British army by which India is 
garrisoned, the charges for the Indian office at home, or for any other 
service, great or small, she exacts full payment." In another chapter of 
the same work he shows that, though the gross revenues of India in 1857 
were only 820.000.000 rupees, and are now 984,420,000 rupees, of which 
sum by far the largest item is derived from the land revenues, and 
though* the land revenue has, in fifty years, more than doubled, the rates 
are actually lower, because of the enlarged area of cultivation and the 
increase in value of the product of the land. "There has never been, so 
far as my knowledge goes," he says, "a government in India which has 
taken so small a share of the profits of the soil as ourselves, and this is 
true of every province In British India." 



are colonies advantageous to the commerce or 
people: of the governing country? 

Having shown that colonization or control of a comparatively 
unorganized and badly governed country by an experienced and 
intelligent country and government results advantageously to 
the people so governed, it is proper to now consider whether 
it proves advantageous to the people of the governing country. 

In doing this we must consider two things — first, whether they 
can furnish us the goods which we must import, and so enable 
us to spend our money among their people instead of sending 
it to absolutely foreign countries; and second, whether they will 
become a market for our surplus products, or prove a doorway 
through which we may find a market in other countries. 

Both of these questions rnay properly be answered in the 
affirmative, as relates to the territory which has recently come 
into closer relationship to us. The people of the United States 
pay over $350,000,000 annually, or practically a million dollars 
in each day of the year, for tropical products, all of which can 
be produced, and most of which are now produced in some de- 
gree, in the islands under consideration. Some of these are for 
use in manufacturing and some as foodstuffs. A careful study 
of the imports into the United States during 1899 shows that 
the importations of tropical and subtropical products are over 
$350,000,000. 

This compilation, it is proper to add, includes raw silk, tea, 
and rice, and the small proportion of our sugar importations 
which is manufactured from beets; but even if these be omitted 
the total which would be clearly entitled to be classed as tropical 
products would exceed $250*.000,000. annually. Sugar, coffee, 
india rubber, fibers, tropical fruits and nuts, cacao, tobacco of 
the finer grades, spices, gums, indigo, dyewoods, and cabinet 



COLONIES AND COLONIZATION. i:\5 

■woods form the important features of this large importation, 
and all of them articles for which the United States is absolutely 
dependent, with the possible exception of sugar, upon other 
parts of the world, and for the present at least for the larger 
proportion of our sugar. 

Curiously, all of these articles can be produced, and are now 
produced, to a greater or less extent, in the islands in question. 
Sugar, as everybody knows, is produced in large quantities in 
Cuba, Porto Rico, Hawaii, and the Philippines. Of our sugar 
importations in the ten months just ended, Cuba has furnished 
683,000,000 pounds, other West Indies 514,000,000 pounds, the 
Hawaiian Islands 534,000,000 pounds, the Philippine Islands, 50,- 
000,000 pounds, while the East Indies have, in the present year, 
furnished a larger share of our sugar importations than any 
other single part of the world, the total number of pounds from 
the East Indies alone being - for the year ending with June 30, 
1900, i;202,043.287 pounds, out of a total of 4,018,084.306 pounds. 
Coffee, of which our importations are growing constantly and 
rapidly, amounting to about 850,000,000 pounds annually as 
against an average of about 550,000,000 pounds in the earlier 
years of the decade, is successfully grown in all of the islands 
in question, and at one time was a very important crop in Cuba 
as well as at present in Porto Pico, Hawaii, and the Philippines. 
Fibers, of which the importations in the fiscal year 1900 amount- 
ed to $26,000,000 in value, can readily be grown in all of the is- 
lands, the Philippines already supplying that most important 
feature of our fiber importations, manila hemp, which alone 
amounted to over $7,000,000 in value. 

While two or three of the larger items of our tropical and sub- 
tropical imports — rubber, silk, and tea — are not produced in any 
considerable quantities in the islands in question at present, 
experiments which have been made in those islands, especially 
in tea and silk, indicate at least that their production is possible 
and may prove entirely practicable with further experiment. 
Even without these items the list of importations of tropical 
products which it is well known can be produced in these islands 
•sts the possibility that fully $200,000,000 which the United 
States has been heretofore expending outside her own territory 
and population for products which her people must have and 
do not produce can. in no distant future, be distributed in these 
islands in exchange for their supplies, whose production will 
doubtless be stimulated by the introduction of American capital 
and American methods. 

The following table shows the imports of tropical and sub- 
tropical products into the United States in the year 1899, ar- 
ranged in the order of magnitude: 

imports of tropical and subtropical products Into the United States in 1899. 

[Compiled from official reports of the Treasury Department.] 

Sugar ?10S.124.R77 Spice* S2.934.850 

Coffee 51 !,068,980 Indigo 1.816,828 

Silk 43,546,872 Licorice root 1,550.100 

India rubber 34.219.019 ' Olive oil 1,199,607 

Fibers 21,308.904 Ivory 801,408 

Fruits and nuts 20,553,022 Dyewoods 805.719 

Tobacco 11 ,654,893 Sponges 519.814 

Tea Hi.034.001 Corkwood 481,520 

Gums 6.126.343 Miscellaneous 12.000,000 

OOl tr.n 6,608.395 

< aeao and chocolate . . . 5,788 73s Total $350,438,066 

3.301.110 

It is thus apparent that we must expend constantly vast sums 
of money for tropical products; and if so, why not expend it 
among people under our own flag? 

it is not meant by including sugar in the above list, to in- 
te that we must always continue sending money abroad for 
sugar. On the contrary, there is reason to believe we shall soon 
be producing it from beets; but until this is the case why not 
pay the $100,000,000 a year which we send abroad for sugar to 
people under the American flag, and where American capital will 
be invested and thus benefited. 

Now. to consider colonies as a market for our surplus prod- 

Tt Is above shown that we can expend many millions in 

those islands which we should otherwise have to spend elsewhere, 

and if so, we may reasonably expect them to in return buy from 

us the articles which they must import, 



136 



COLONIES AND COLONIZATION. 



We do not need to merely argue that we might with propriety- 
expect these islands to buy of us if we buy from them, for we 
have the experience of France, Germany, and England to show 
that this has been their experience. 



Commerce of French Colonies. 

French colonies show a rapid increase in the proportion of 
their importations which they take from the governing country. 

The following table shows the value of imports of French colo- 
nies during the year 1896, by principal articles: 



Textiles 


$10,104,917 

4,858,154 
4,654,325 
3,144,032 

2,977,700 

2,477,472 

2.162 551 


Spirits, wines, etc 

Cereals and flour 

Colonial products 

Machinery, hardware, 
etc 


Building stone, combus- 
tibles, etc 

Animal products, hides, 
etc 


Yarns and threads 

Oils and vegetable es- 
sences 


1,812,207 

1,536,537 

1,485,202 

1,268 507 

'917,754 


Metals 

Chemical products 

Fish 


Paper, printed matter, 
etc 


862.504 


Pottery and glassware. . 


747,621 



Timber $733,041 

Live animals $728,252 

Vegetables, fruits, and 

seeds 644,388 

Arms and ammunition. . 606.818 

Furniture and woodwork 520.754 

Dressed skins and furs. 488.985 

Drugs 322,814 

Coloring matters 184,518 

Clothing 119,638 

Matting, wickerwork, 

etc 119,594 

Dyes 111,375 

Vegetable fibers, etc... 99,174 

Musical instruments . . . 38,110 
Sundry products and 

manufactures 3,190,283 



Total $46,917,236 



Commerce of English Colonies. 

Another and broader way of looking at it than the mere study 
of articles imported is to see the total commerce which the 
various nations have with their colonies, and the relation which 
their commerce with the colonies has to that with other parts of 
the world. A recent London letter to the Philadelphia Inquirer 
has the following: 

It will amaze a very large number of the mercantile public, even 
though they be well posted in trade statistics, to learn what an enor- 
mously valuable asset in England's trade is the colonial business. A 
leading journal that battles strongly for British trade and which is kept 
busy in pointing out to British traders what their American and German 
rivals are doing to best them in the race for commercial supremacy, says 
that it must again call attention to the great subject of union with the 
colonies. 

"We advert to it once again," writes the editor, "because we think the 
present a favorable opportunity to take a long step forward. Interested 
in the question in its commercial aspect chiefly there seems to us two 
reasons, overpowering in their nature, why policy no less than patriotism 
demands the closest possible combination among the peoples of tne Em- 
pire. In the first place, the colonies, taken as a whole, occupy the second 
place among the traders of the world. Without going into detail, confin- 
ing ourselves to the chief participants in the traffic, and assuming for 
the present that the total of their interchanges may be represented by 
round numbers, say 2,000, the shares of the several holders stand thus: 

Great Britain and Ireland .• 594 

The British colonies 407 

Germany 354 

The United States 348 

France 297 

Total 2,000 

"In these circumstances can anyone entertain a doubt where lies the 
chief interest of England as a mercantile community? The merest exi- 
gencies of trade call upon us to cultivate by all means the closest relations 
with the Empire over sea. High as is the position they have now at- 
tained, we should not forget that the British colonies are that portion of 
the world which is developing most rapidly in all things that make for 
national greatness, and that their resources, far from being exhausted, 
are but beginning to be exploited. Is it not patent that, if we had shown 
one-half the zeal in gaining the affections of the colonies and binding 
them to us that we have lavished on France, the United States, and Ger- 
many during the last thirty years— the Empire, vast as it is, would be 
to-day Immeasurably richer, immeasurably more powerful? 

"The colonies, I may add. most certainly are England's best customers, 
as is shown in Mr. Mulhall's paper on 'British Trade' in the March Con- 
temporary. Take some figures for the last decade, 1889-1898. England's 
aggregate interchanges, export and import, with great industrial com- 
munities were as follows: 

The British colonies £1,788,000,000 

The United States 1,399, 000, (K)0 

Germany 824,000.000 

France 682,000,000 

Total ', , . , 4,693,000,000 



COLONIES AND COLONIZATION. 137 



"Thus England's colonial trade snows an excess of £389,000,000 over her 
United States trade, an excess of £92-4, U00. Out) over that with Germany, 
and of £1,106.000.000 over the French trade in the space of ten years. 
The contrast is still more striking if one divides the aggregates according 
to exports and imports. It is well known how England's sales to Euro- 
pean nations dwindle year by year under the operation of hostile and com- 
mercial restrictions. Take the United States for the period under review. 
Her account gives the following result: 

Purchases from the United States £1,019,000,000 

Sales to the United States 380,000,000 

Total 1,399,000,000 

"The reports for the British colonies indicate much more equal condi- 
tions of trading and a freer access to their markets: 

Purchases from the colonies £949,000.000 

Sales to the colonies 839,000,000 

Total 1,788,000.000 

It will be seen by the above statement that the United Kingdom, 
finds her colonies by far her largest customer, and that they 
take from her more than twice as much of her products and 
manufactures as does the United States. 



COST OF COLONIZATION. 

Are Colonies a Burden to the Country Establishing Them — 
Some Practical Facts From the Practical Experience of the 
Most Successful Colonizing' Country of the World. 

There have been expressions of doubt as to the direct advan- 
tages or disadvantages of colonial control — whether the coun- 
tries establishing colonies find the cost greater than the net re- 
sults. This is a secondary consideration, especially under the pe- 
culiar circumstances in which Porto Rico, Hawaii and the Philip- 
pines came to us. Yet it is proper that this should be consid- 
ered, especially as there have been statements- made to the effect 
that England's colonies are a heavy burden to her. 

Cost of Colonial Control. 

The fact that large sums of money are expended in the physi- 
cal and educational development of the countries- and people con- 
trolled by the colonial systems of the British Government sug- 
gests the important question of whether or not colonies are a 
burden financially. It has been already shown that they are ad- 
vantageous to the country controlling them in the increased mar- 
ket which they make for exports of that country, and the oppor- 
tunity given of supplying its home market with the products of 
its own people. It is interesting, and indeed important, to know 
whether in the development of the colonies, the construction of 
highways, railways, telegraphs, harbors, and the establishment 
of postal systems, schools and educational facilities generally, 
the expenses are borne by the home government. This subject is 
discussed in detail in a letter recently written by Mr. S. G. Hob- 
son, editor of The Hardwareman and Hardware Exporter, of 
London, in response to specific inquiries by the Chief of the 
Bureau of Statistics regarding the experiences of the British 
Government along these lines. It is as follows: 

In reply to your question concerning the relations of the mother country 
to the colonies you ask: 

"1. Whether the home Government expended any considerable sums of 
money in the earlier history of the colonies. 

"2. Whether such expenditures, if made, have been refunded by the 
colonies. 

"3. Whether the large sums which have been expended in permanent 
improvements, such as railways, telegraph lines, public highways, har- 
bors, etc., have been supplied in part by the home Goverument, and if 
so, in about what proportion? 

"4. Whether the troops in the colonies are supported by the home Gov- 
ernment or by the revenues of the colonies themselves; and 

"5. Whether the colonial system is generally looked upon by the people 
of the home Government as advantageous or otherwise." 

In reply to the first Question : No; the Government has not spent any 
considerable sum of money in the earlier history of the colonies, so that. 
secondly, there has been no return of initial outlay by the colonies. It is 
necessary here to carefully discriminate between colonial expenditure, 



13S COLONIES AND COLONIZATION. 

pure and simple, and home Government expenditure for defense. Where- 
ever public works have been of strategic value, either from a military or 
naval point of view, the home Government always expends a fair share. 
For example, the harbor of St. Lucie, in the West Indies, was recently 
put into condition at a cost of 75,000 pounds sterling, to which the Gov- 
ernment contributed 25,000 pounds sterling; and in like manner many of 
the harbors throughout our colonies, and particularly in South Australian 
waters, have been partially subsidized by the home Government. 

But so far as colonization is concerned it has been a natural process, 
the home Government only taking cognizance of the colony when it has 
grown sufficiently to warrant self-government. 

Then, again, there are occasionally grants in aid in times of colonial 
distress. For example, the West Indian sugar plantations having proved 
unremunerative, a grant in aid is made to them, and it may or may not 
be repaid, but sometimes the colonies have been unable to meet their lia- 
bility and the Government wipes out the debt. 

3. With regard to this question, no governmental money is expended on 
railways, telegraph lines, or public highways, excepting so far as they 
are covered in my answer to No. 1. But the Government will often meet 
the case by giving a guarantee. But if the Government guarantee be 
given in colonial projects of this description capital is always forthcoming, 
and there is hardly any case on record where the Government has been 
called upon to make good its guarantee. The only case in my memory 
is that of the Turkish bonds, but as a general rule it is perfectly accu- 
rate to assume that the Government guarantee always meets the financial 
difficulty. For example, there is an agitation in South Africa for a rail- 
way from Cape Colony to Cairo. Mr. Rhodes has been interviewing the 
home Government, asking, not for capital, but for a guarantee. The 
Government will only guarantee the railway so far as it considers it of 
commercial value, and has given its guarantee for one section of this 
project. Mr. Rhodes will now have no difficulty in obtaining money from 
the nation, for it is covered by the guarantee. 

The troops in the colonies are paid directly by the home Government, 
but the leading colonies pay the Government a proportion. The amount, 
however, is proportionately very small and by no means regular; some 
colonies pay and some do not. 

Cape Colony has recently offered the home Government the price of a 
first-class battle ship. But the payments on the part of the colonies are 
entirely voluntary, the general principle being no taxation without repre- 
sentation. There is a movement here for imperial federation, and doubt- 
less in the future this question will be put upon a proper foundation. 

In reply to question 5, the opinion here fluctuates as to the value or 
otherwise of colonial expansion. Roughly speaking, the average Britisher 
is ready to accept responsibility, but he is not particularly enthusiastic 
about it. 

The fact is, we are a colonizing nation, and among the well-to-do classes 
it is quite the usual thing for the younger sons to try the colonies for a 
few years. The law of primogeniture is partly responsible for this, while 
our industrial system is continually throwing out large bodies of men 
whjj at once emigrate. 

Of" course the emancipation of the slaves was a capital investment of 
£33,000.000, which the colonies have never repaid and never will. 



TBADE OF EUROPEAN COUNTRIES WITH THEIR 
COLONIES. 

The commercial benefits of colonization are indicated in some 
degree by the tables, printed on pages 312 and 313, Which show 
the exports of the United Kingdom, France, Netherlands, and 
Spain, respectively, to their colonies, in recent years, and. the 
percentage which these exports form of the total exports of 
the countries in question; also, the percentage of their total 
imports which the colonies take from the mother countries, and 
the share of their imports which other parts of the world take 
from the countries in question. The figurres are from the official 
publications of the countries in question. 

It will be seen from an examination of these tables that the 
United Kingdom in 1897 exported to her colonies goods valued 
at $423,212,102 out of a total exportation of $1,431,598,345; thus 
30 per cent of her total exports were sent to the colonies. The 
total imports of her colonies in the year were $1,216, 284, 637, 
and the amount which they took from Great Britain, $423,212,- 
102, formed 34.8 per cent of their total imports. To the non- 
British world the United Kingdom sold in the same year goods 
valued at $1,008,386,243, and this amounted to only 13 per cent 
of the imports of the non-British world in that year. Or, to put 
it in other words, Great Britain was, through her relations with 
her colonies, able to supply them with 34.8 per cent of their 
imports, while to the non-British world she was only able to 
supply 13 per cent of its imports. Even in the case of the United 
States, from which her purchases are enormous, whose people 
speak the same language and have extremely close business 
relations with her, she only supplied in 1899, 17 per cent of its 
total imports, while supplying 34.8 per cent of the imports of 
her colonies. 



COLONIES AND COLONIZATION. 139 

The imports of the British colonies, as already indicated, are 
$1,216,284,637. and had Great Britain supplied to* them only the 
proportion — 13 per cent — of the imports she was able to supply 
to the non-British world it would have amounted to but $158,- 
106,000 instead of the $423,212,102 which she actually did send 
to them. 

Thus in the year in question, upon this estimate, she made 
a market in her colonies for $265,000,000 worth of goods in e&- 
caps of what she would have sold them hud they held ttie mme nAm 
Hon to Iter (hat doe* the nonr-JBritisfi world generrdig. Even had she 
been able to supply them as large a proportion of their imports as 
she supplies of the imports of the United States her sales to them 
under such extremely favorable eiivumstanees would have fallen 
|218,OOo,000 bel<<w those actually made. 

In the case of the other countries the study is equally inter- 
esting. France supplied to her colonies :j2.5 per cent of their total 
imports, while the non-French world took from France but 
9.3 per cent of its imports; the Netherlands supplied to its colo- 
nies -'1.7 per cent of their imports, while the non-Netkerland 
world took from that country less than 6 per cent of its imports; 
Spain supplied to her colonies 84.6 per cent of their total im- 
ports, while the non-Spanish world took from that country less 
than 2 per cent of its imports. 

It is apparent from this study of the commercial relations of 
Great Britain and her colonies and of the non-British world, 
respectively, that her sales to her colonies were more than twice 
as large as they would have been had the colonies not held this 
relation to her. Now. let us apply this general fact to Great 
Britain's commerce with her colonies during a term of years. 
The table on page shows the exports of the L nited Kintr- 

dom to her colonies in each year from 1868 to 1898, a term of 
thirty years. It will be seen by this table that her exports to 
her colonies during that time have amounted to 811.580,000,000, 
and applying to this vast sum the estimate already made that 
she sells to her colonies more than double the amount which 
they would buy did not the colonial relationship exist it will 
be apparent that she has by her colonial ■ for her manufac- 

turers <u)d producers a market during tin; hut thirty years for nurs than 
/)<)<), goo i cess of that which they would have h id urtih this 

rriiory hod not tin: colonial relat 

Now. to take the other side of the case: All manufacturing 
countries and countries of the temperate zone now find it ne- 
cessary to import large quantities of tropical products, partially 
for manufacturing and partly for consumption of their people — 
coffee, sugar, cocoa, spices, hemp, jute, rubber, etc. By making 
these purchases in the colonies the mother country benefits those 
of her own citizens whose capital is invested in great producing 
enterprises in the colonies, and at the same time obtains a per- 
manent and regular supply of the articles which she must have 
for her factories and breakfast tables. Of the total imports of 
the United Kingdom in the last thirty years, more than $12,000.- 
000.000 worth, or 23 per cent, has been taken from her colonies, 
while of her experts in the decade 1869 to 1S79. 25 per cent went 
to the colonies, and in the following decade 20 per cent, while 
in 1S98 more than HO per cent went to the colonies. 

Thus in the past thirty years the United Kihgdoni has, through her 
cbhmial enterprises, made a market for fully six thousand million 
dollars icorth of goods in e.reess of what she would hare sold to 
the same territory had not the colonial relationship existed, while 
she has expenehd among the people of those countries $12.000,00 f K000 
in the purchase of articles required by her population for food or 
manufacturing and thus benefited to a great extent both the people 
of the colonics and those of her own people having business relations 
employees; and in al cases, with the exception of the traveling 
in the colonies. 

The class of goods which the British colonies take from the 
United Kingdom and supply to her is shown by table on page 
The important articles which the colonies take from the mother 
country are precisely the class which the manufacturers of the 
United States are now sending abroad and for which they are 
desiring to find or create a market — cotton goods, manufactures 
of iron and steel, machinery, manufactures of wool, manufactures 
of leather, paper and stationery, clothing, haberdashery, arms, 
ammunition, carriages, telegraph and electrical apparatus, books. 



140 COMMERCE WITH CUBA AND PORTO RICO. 

and other articles of this character. These form the bulk of 
Great Britain's exports to her colonies, while her imports from 
them include fibers, cabinet wood, hides and skins, dyestuffs, 
pig" tin, rubber, tropical fruits, tea, coitee, sugar, spices and many 
other articles of this class. 

Now to apply these facts to the islands with which we have 
come into closer relations under the Administration of President 
McKinley: The imports of these islands under normal condi- 
tions have ranged in the vicinity of $100,000,000 a year, and it is 
reasonable to believe that they will, within a comparativelj' 
short time, double their purchasing power. Their imports are 
almost exclusively of the class of goods which the people of the 
United States desire to sell, and judging from Great Britain's 
experience with her colonies, it may be expected that the share 
which we have in the past supplied of their imports will be 
greatly increased. That our exports to them are already rapidly 
increasing is indicated by statements which follow, showing the 
value of the exports to each of the islands in question during the 
past few years. 

Commerce of the United States With Cuba, Porto Rico, and the 
Hawaiian, Philippine, and Samoan Islands. 

Exports from the United States to Cuba, Porto Rico and the 
Hawaiian, Philippine and Samoan Islands, amounted to $47,303,- 
941 in the fiscal year 1900, and were more than three times as 
much as in 1896 and nearly twice as much as in any year of our 
commerce with those islands except in the years 1892, 1893 and 
1894, when recii>rocity greatly increased our exports to Cuba and 
Porto Rico. To Cuba the total for the fiscal year was $26,513,- 
613, against $7,530,000 in the fiscal year 1896 and $24,157,000 in the 
great reciprocity year 1893, when exports to that island were 
more than double those of five years earlier. To Porto Rico the 
exports of the year were $4,640,431, against an average of $2,- 
750,000 in the reciprocity years 1892, 1893 and 1894, when exports 
to that island were double those of earlier years. To the Ha- 
waiian Islands the total for the year was $13,509,148, or five times 
as much as in 1893, nearly four times as much as in 1896, and 
more than double the total for 1898. To the Philippines the total 
for 1900 was $2,640,449, or more than in the entire fifteen years 
since 1885, the date at which the first record of our exports to 
the Philippines was made by the Treasury Bureau of Statistics. 
To the Samoan Islands the exports of the year were $146,267, 
or nearly as much as in all the years since 1896, at which 
date the official records of our exports to those islands began. 

On the import side, Cuba begins to show something of her old- 
time strength as an importing island, as the total imports into 
the United States from Cuba for the full year show a total of 
$31,371,704, against $15,000,000 in 1S98 and $18,500,000 in 1897, al- 
though they still are less than half the average for the reci- 
procity years 1892, 1893 and 1894, when our imports from that 
island averaged over $75,000,000 per annum. From Porto Rico the 
imports of the year are $3,078,415, which is much more than the 
average since 1893. From the Hawaiian Islands the imports 
for the full fiscal year are $20,707,903, or double the average an- 
nual importation for the period prior to J 896, and 20 per cent 
higher than in any preceding year, while from the Philippines, 
despite the war conditions which reduce producing and exporting 
power, the imports are larger than in any year since 1894, 
amounting to $5,971,208. 



COMMERCE WITH HAWAII AND THE PHILIPPINES. 141 



The following table shows the exports to and imports from 
Cuba, Porto Bico, and the Hawaiian and Philippine Islands in 
each fiscal year since 1865; the figures are official: 



Year ending 

June 30— 


Exports from the United .states tc— 


Cuba. 


Porto Rico. 


Plawaiian 
Islands. 


Philippine 

Islands. 


1 885 


Dollars, 

9.006.160 
10.109.170 
10.546.411 
10,058.oi i0 
11.691.811 
18,084.415 
12^24,838 
17,958 .57 J 
24,157.698 
20.125.821 
12X17.061 
7,530,880 
8,259.77!i 
9.501,056 
IS.ii 19,877 
26,518,018 


Dollars. 
1 ,509.205 
1,710,569 
1.788,4'. 12 
1,969,618 
2.224.981 
2.297.588 
2,L>5,284 
2,856,008 
2,510,607 
2.720,508 
1.888.514 
2.102,094 
1,988 ,SS8 

1.505.1 m 

2,685348 
4340,431 


Doll a rs. 
2.787.! (22 
3.192.698 
8.022,029 
2.085,208 
3.875.611 
4.711.417 
5a07.212 
3,781,628 
2327,663 
8.8(16.187 
8.728.057 
3,985,707 

• 4,690,075 
5.907.155 
9305,470- 
18.509,148 


Dollars. 


1886 ... 


1-2 9 : >: 


IS,-;? 


147,0!»2 


1X88 


165.1X13 


1889 

ISOO 


170.647 
122.276 


mi 

1S92 


124.572 
OO.Ol 4 


1898 

IS!) 1 

1S!)5 


154,378 
145.466 
il9£55 


[896 


162,466 


Lb97 


94,597 


1£98 

i>99 

1900 


1? 

Sic £. 



Year ending 
J une 30. 


Imports into the United States from — 


Cuba. 


Porto Ricb, 


Hawaii. 


Philippines. 


1S85 


- 12,800.098 
51,110,780 
49.515.48! 
49310,087 
52 130,623 
53,801,591 
61,714.895 
77.! 18 1.671 
78.700.500 
75.li7S.251 
52.S7 1.259 
40.017.780 
18,406,815 
15,282.477 
25,408328 
81371,704 


1.208 

;.".!) i.5 it 

4.001.090 
4,412,483 

8,707.878 
4.058.620 
8.164,110 
8.24S.007 
4.00S.028 
8.1:55.684 
1.516,512 
2,296,653 
2481.024 
2.414,850 
8.179.S27 
8,078,415 


>7,197 
9, 805.707 
9.922.075 
(1360,379 
12347,740 
12.812.'. (OS 
18.S95.597 
8,075382 
9.140.707 
10,065.817 
7.SSS.901 
1 1 .757.704 
13.0S7.799 
17.1S7.8S0 

17331,463 

20,707.01)8 




1886 


89sb6£ 912 


1887 

1888 


s.oi 1330 
10.20S.27S 


1SS9 


IO393472 


!S90 

189) 

1S!)2 


11392326 

5,107.20!) 
6308353 


Ife93 


9,150357 


ls'.tl 


7,(X)S,842 


- 1 -. - 1 


4,731366 
4382357 
4383,740 


1898 


3330,315 


1890 .. 


1,409,774 


1900 


5,971.208 







Imports of Cuba, Porto Rico, and the Philippine Islands. 

Cuba, Porto Bico and the Philippines afforded a market for 
over $40,000,000 worth of Spanish goods per annum, according 
to a recent statement of the British consul at Barcelona. About 
Three-fourths of this amount was in manufactured goods, and 
considerably more than one-half of the market was that of 
Cuba alone. According - to the statement which Consul 
Boberts sends to the British Foreign Office, dated June 18, 1899, 
the exports of Spain to Cuba in 1896 amounted to $26,8S2,335; to 
Porto Rico, $7,532,162, and to the Philippines, $7,671,551, making 
;i total of $12,085,948, accepting the value of the peseta at 20 
cents. Of the $26,882,335 value of goods exported to Cuba in 1896, 
$16,530,418, according to Consul Boberts, consisted of manufac- 
tured goods, $10,170,111 provisions, and $191,805 of raw materials. 
Of the $7,532,162 value of goods exported from Spain to Porto 
Bico in 1896, the value of $5,821,595 was manufactured goods, $1,- 
680,300 provisions and $20,264 raw materials. • To the Philippines, 
of the $7,671,551 value of goods exported from Spain, the value 
of $6,850,178 was manufactured' goods. $814,111 provisions, and 
$7,261 raw materials. Totalizing the three colonies, Consul Bob- 
erts finds that of the $42,085.9 .S value of goods exported from 
Spain to Cuba, Porto Bico and the Philippines in 1896, the value 
of $29,202,192 was manufactured goods, $12,664,525 provisions, 
and $229,331 raw materials. 

To this market for $42,000,000 worth of Spanish produce, which 
the three colonies supplied, Consul Boberts adds $4,600,000 
for money paid to the Spanish steamship companies for the car- 
rying tr;,d« to and from the colonies. The imports into Spain 
ifrom the Colonies, he says, amounted in 1896 to 260.S77 tons from 



142 COMMERCE OF CUBA, PORTO RICO AND THE PHILIPPINES. 

Cuba, 26,071 tons from Porto Rico, and 40,985 tons from the Phil- 
ippines, and confutes that the amount paid in freight amounted 
in the commerce with Cuba to $1,565,262; Porto Rico, $156,426, 
and the Philippines, $450,835, or a total of $2,172,523, and says: 

If to this be added the value of passage money to and from the colo- 
nies, putting it at the low average of $50 a head, it shows a further 
$::.( no.uOO per annum, giving a total of $4,000,000 per annum paid in 
freight and passage given to the steamship companies for the carrying 
trade to and from the colonies. 

The following- tables indicate the classes of articles exported 
from Spain to Cuba, Porto Eico and the Philippines in 1896, the 
year discussed by Consul Roberts, including- all articles or 
classes of articles in which the value exceeded $200,000: 

Principal exports from Spain to the Philippines in 1896. 

Cotton fabrics $5,094,116 

Paper, and manufactures of 314.260 

Leather, and manufactures of 202,580 

Principal exports from Spain to Porto Rico in 1896. 

Cotton, and manufacturers of $2,487,953 

Shoes 1,076,148 

Sandals 720.276 

Rice 530,522 

Soap 251,163 

Oil, common 240,415 

Principal exports from Spain to Cuba in 1896. 

Wheat flour $4,065. 37 6 

Cotton manufactures 3,744.257 

Leather shoes 3,449.952 

Sandals 2,686,7i >2 

Firearms 1,872.240 

Wine 1,488.161 

Preserved foods 948.472 

Flax, hemp, etc., aud manufactures of 740.017 

Oil, common : 663.241 

Soap 635.369 

Wood, manufactures of 451,568 

Wax and stearin 419,124 

Beans 375,604 

Onions, garlic, and potatoes 241,023 

Smoking paper 377,046 

Packing paper 284 047 

Rice 298.970 

Corn *. 286.563 

Pressed meat 310.314 

Soup pastes (vermicelli, etc.) 287.200 

Saffron 234.252 

Woolen blankets 219.971 



I am not one of those who would take a laurel from the 
brow of the American soldier or a jewel from the crown of 
American achievement. — Iowa Falls, Oct. 16, 1899. 

Rejoicing as we do over the victories of war, let us be care- 
ful in justice and right to gather the triumphs of peace. The 
soldiers and sailors have done their part. The citizens must 
now do theirs. — President McKinley at Noblesville, Ind., Oct. 
21, 1898. 

There are responsibilities, born of duty, that can never be 
repudiated. [Applause.] Duty unperformed is dishonor, and 
dishonor brings shame, which is heavier for a nation to carry 
than any burden which honor can impose — President McKin- 
ley at Quincy, 111., Oct. 6, 1899. 

The future of these new possessions is in the keeping of 
Congress, and Congress is the servant of the people. That 
they will be retained under the benign sovereignty of the 
United States I do not prmit myself to doubt. That they will 
prove a rich and valuable heritage I feel assured. — President 
McKinley at Minneapolis, Minn., Oct. 12, 1899. 

Let nothing distract us; let no discordant voice intrude to 
embarrass us in the solution of the mighty problems which 
involve such vast consequences to ourselves and posterity. 
Let us remember that God bestows supreme opportunity upon 
no nation which is not ready to respond to the call of supreme 
duty.— President McKinley at St. Louis, Oct. 14, 1898. 



OUR MERCHANT MARINE. 

The shipping question still remains to be settled. Two lead- 
ing features of the subject demonstrate its importance: 1. We 
need a great fleet of modern American merchant ships and sea- 
nen with which to reinforce our navy, and for auxiliary cruisers, 
transports and colliers in time of need, as was shown during- 
our war with Spain. 2. We should retain at home for the em- 
ployment of our own people the larger part oC the vast sum now 
paid to foreign ship-owners — estimated at between $175,000,000 
and $200,000,000 a year— for carrying 92 per cent, of our imports 
and exports. There are many other all-sufheieiit reasons why 
American ships should carry more than 8 per cent of our foreign 
commerce; there are equally sufficient reasons why we should 
not remain dependent upon foreign shfps for our ocean trans- 
portation. 

Military and Naval Advantages Paramount. 

The military and naval advantages resulting from the posses- 
sion of merchant ships and trained men, as much as the econom- 
ic and commercial benefits, induce foreign nations r,o financially 
aid in the establishment and maintenance of Their merchant 
shipping. These considerations alone invest fche subject with a 
degree of national importance much greater than applies to 
ordinary political questions. 

Value of Shipping Employed in Our Foreign Trade. 

Our foreign commerce employs nearly 5,000.000 tons of ship- 
ping, about 850,000 tons of which is under the American flag, 
and of this five-eighths is sailing shipping. Five hundred millions 
of dollars would be required to replace with American the foreign 
ships now engaged in our foreign trade. The building of i evr 
ships and the repair of old ones would involve an annual addi- 
tional expenditure of "$50, 000, 000. Three times as much more 
would be annually disbursed by these American ship-owners for 
the maintenance and operation of their vessels. Fully 250,000 
additional workmen (supporting a million people) would find 
employment if We built and operated the ships employed in our 
foreign commerce. 

Why American Ships Cannot Compete. 

There are several reasons why we do not build and operate 
ships in our foreign trade, namely: 1. It costs 25 per cent more 
to build ships in the United States than it does abroad. This is 
due to the irregularity and uncertainty of employment and to 
the higher wages paid in our ship-yards as compared with those 
abroad. With a steady and permanent demand for ships we 
should through economies that would be introduced and efficien- 
cy attained soon be able to build as che iply as abroad, main- 
taining the American standard of wages. 2. It costs from 30 to 
40 per cent more in wages paid and food provided on American 
ships than it costs on foreign ships. 3. Foreign governments pay 
more than $26,000,000 a year in mail subsidies, subventions, con- 
struction and navig-ation bounties, naval reserve retainers and 
other aids to their merchant ships. Great Britain paid last year 
in this way $5,851,187; Germany paid $1.804, -320 and has greatly 
increased the amount this year; France paid $7,032,242; Italy 
paid $2,185,206; Eussia paid $1,371,187; Austria-Hungary paid 
$1,724,249; Spain paid $1,620,927; and Japan paid $3,192,107. It 
must be obvious that unaided American ships cannot success- 
fully compete with foreign ships possessing the triple advantages 
of cheaper construction, cheaper operation, and Government aids. 

Our Growing Exports. 

The interests which the United States must safeguard upon the 
; seas are the equal of those of any other nation. Already our ex- 
ports exceed in value those of any other nation, and at the pres- 

143 



144 OUR MERCHANT MARINE. 

ent rate of growth they will be doubled in value in less than a 
decade. But G per cent of our exports are carried in American 
ships. Europe, which absorbs 75 per cent of our entire exports, 
receives but 1.3 per cent in American ships. 

Neglect of Our Marine Strengthens Foreign Nations. 

Whatever necessitates or justifies the aid given by foreign gov- 
ernments to their merchant ships, necessitates and justifies sim- 
ilar aids to American ships from our Government. We have no 
special immunity from the dangers that threaten other nations, 
and our need of merchant ships and men is as great as that of 
any other nation. While our neglect of our merchant marine 
and the aids given theirs by other nations give foreign ships 92 
per cent of our foreign carrying, our commerce pays all the cost 
of building and operating the foreign shipping it employs. Thus 
our policy of neglect becomes a military and naval, as well as an 
economic and commercial, aid to other nations. It is possible — 
although we may hope it is improbable — that the foreign mer- 
chant ships and seamen now sustained by our commerce may 
be turned against us in war! Again, an armed conflict between 
any of the great Euporean powers would involve the withdrawal 
of immense numbers of foreign ships upon which we depend 
for the transportation of our exports, entailing stagnation in our 
industries and enormous losses to both labor and capital. 

Republican Record on Shipping. 

The Republican party has not been indifferent to the dangers 
and losses resulting from foreign monopoly of our foreign car- 
rying. The precedent of encouraging the construction of fast 
steamships for our foreign trade, by postal subsidies, first es- 
tablished by the Democrats in 1845, and under which many mil- 
lions of dollars were expended before 1853, was followed by Re- 
publicans in two notable cases nearly thirty years ago, and led 
to the enlargement of one American steamship line on the Pa- 
cific and to the etablishment of another in our trade with Brazil 
on the Atlantic. This was followed by Republican legislation in 
1884 and 188G, which has saved millions of dollars to American 
vessel owners in the abolition of fees for inspection of vessels, 
licensing of officers and issuance of marine documents. Begin- 
ning in 1872, by successive steps Republican legislation has 
placed upon the free list all imports of materials used in the con- 
struction of vessels in the United States for foreign trade. Re- 
publicans introduced and for years urged the passage of the 
Tonnage Bounty Bill which was defeated by Democratic \otes 
in March, 1891, since which time the American people have paid 
foreign ship-owners between a billion and a half and two bil- 
lions of dollars — enough to have constructed four times over all 
the ships our foreign commerce has since employed. — fully as 
much as has been collected at all of our custom houses during 
that period! Republicans framed and passed the Postal Subsidy 
Act of March, 1891. The compensation provisions as originally 
fixed in that bill — to an amount barely sufficient to attract Amer- 
ican capital into home-built ships — was reduced one-third in 
amount through Democratic opposition, and its effectiveness 
was thus fatally impaired. It is to the operation of this act, 
however, that we owe the existence of our entire steam tonnage 
under the American flag to-day in our foreign trade. 

Democratic Attitude Toward American Shipping. 

Democrats, on the other hand, to the extent that they have 
done more than oppose constructive Republican shipping legis- 
lation, have proposed measures more in the interest of foreigners 
than Americans. In the House of Representatives in the Fifty- 
third Congress a Democrat introduced a "free ship bill," which 
was referred to the committee of which he was chairman and 
reported for passage by every Democratic member of that com- 
mittee. It was not from the lack of powerful and influential 
Democratic urging that the bill failed of consideration and pas- 
sage. 



OUR MERCHANT MARINE. 145 

Free Ships Their Only Remedy. 

The only shipping 1 bill introduced in the Fifty-sixth Congress 
by a Democrat was that offered by Senator Vest of Missouri 
and which is a free ship bill, even to the extent of throwing 
open our growing- and prosperous domestic trade — from which 
foreign ships have been excluded since the foundation of our 
(iovernment — to the competition of foreign vessels. The "free 
ship" policy means the free American registry of foreign-built 
ships when owned by American citizens. Americans are now 
privileged to p>urchase foreign-built ships and run them in our 
foreign trade on terms of perfect equality with American ships, 
so tiiat the mere granting- of American registry to such ships 
would be of no advantage to them. In fact, it would place such 
ships at such a disadvantag-e that they could not compete, be- 
cause they would be compelled to carry American officers and 
furnish the much more expensive statutory food scale to those 
employed on board. No present American owner of a ship under 
a foreign flag is known to desire the mere privilege of American 
registry for her. But if such a bill did increase the shipping 
under our flag, it would mean the purchase of foreign rather 
than the construction of American ships. It would mean the 
placing of second-hand foreign-built ships under the American 
nag 1 , and their former owners would probably use the purchase 
money to have new ships built in foreign ship-yards with which 
they would more than ever successfully con, pete with the older 
foreign-built American-registered ships. If the free ship bills 
introduced in Congress by Democrats are offered in good faith 
then their purpose is unquestionably to give employment to 
aliens abroad instead of to Americans at home. It is worthy of 
remark that no Democratic report in favor of free ships has 
beer; tiled since the last session of t he Fifty-fifth Congress. In 
the first session of the present Congress it is significant that 
three Democratic members of the House Merchant Marine and 
Fisheries Committee subscribed to a report distinctly repudiating 
the free ship theory, saying that no party ever had enacted or 
would enact such legislation, and thai the Democrats themselves 
failed to do so when they had the opportunity (in the Fifty-third 
Congress). The other report of the four remaining Democratic 
members of that committee stated thai "we do not propose in 
this report to advocate the idea of free ships." 

Democrats Afraid of the Labor Vote. 

Such ante-election timidity on the part of one section of the 
Democrats shows their fear of the political consequences likely 
to follow the advocacy of free ships. Considering that the free 
registry of foreign ships really means the purchase of British- 
built vessels, instead of the construction of American vessels,, 
the Democratic advocacy of that policy places them in an atti- 
tude of pronounced hostility toward American labor, and for 
the sole reason that the wages paid in American ship-yards are 
so much higher than the wages paid in foreign ship-yards. Dem- 
ocratic assertions that the ships can be built in the United 
States as cheaply as they can. be built abroad is answered in the 
fact that of 2,000,000 tons of ships annually constructed in the 
world for the foreign trade, not to exceed an average of 20,000 
tons — a bare 1 per cent — has been constructed in American ship- 
yards during the past decade. If it were true that ships can be 
built as cheaply in the United States as abroad, large numbers of 
them would undoubtedly be constructed, if not for American, 
then for foreign owners. 

Democrats Unable to Afford Belief. 

Divided, as the Democrats show themselves to be, on the ship- 
ping question, they cannot be relied upon for any legislation 
helpful to American shipping 1 . Xor cau they be depended upon 
to pass any effective measure to break the present foreign mo- 
nopoly of our foreign carrying, which, during the past forty 
years has resulted in the payment to foreigners of fully four 
billion dollars, and which, if unbroken, will mean the expendi- 
ture of five billion dollars during the next quarter of a century. 



146 OUR MERCHANT MARINE. 

Latest Republican Shipping Measure. 

Republicans, on the other hand, have persistently striven to 
secure the passage of a measure believed to be destined to grad- 
ually and quickly upbuild our shipping in the foreign trade. In 
addition to the helpful American shipping legislation already 
upon our statutes through Republican action, an identical bill 
was introduced in both houses of Gongress in December, 1898, in 
the Senate by Hon. M. A. Ilanna and in the House by Hon. S. E. 
Payne, "to promote the commerce and increase the foreign trade 
of the United States, and to provide auxiliary cruisers, transports 
and seamen for Government use when necessary." The bill was 
fully discussed at public hearings before the Senate Commerce and 
the House Merchant Marine and Fisheries Committees, and was 
reported to each branch of Congress with every Eepublican mem- 
ber of each committee recorded in its favor. * The extended dis- 
cussion of the Paris Peace Treaty alone prevented its considera- 
tion at that session. 

Again Favorably Reported to Each Branch of Congress. 

The same bill, amended in several particulars, was reintro- 
duced at the first session of the Fifty-sixth Congress, in Decem- 
ber, 1899, in the Senate by Hon. W. P. Five, and in the House 
by Hon. S. E. Payne. Again the same committees gave extended 
public hearings, resulting in each Republican member of each 
committee uniting in reports recommending the bill's passage. 
Xo Senate minority report was filed, and the two reports filed by 
the House Democrats have already been explained, one favoring 
the bill with certain amendments that would not, if adopted, im- 
pair the bill's effectiveness. 

Indorsements of the Shipping Bill. 

This shipping bill is the result of long study and preparation in 
which those most prominent in American ship-owning and ship- 
building circles participated upon the invitation of Senator Frye, 
Chairman of the Senate Commerce Committee. It is indorsed by 
those to whom the nation must look to invest their capital in 
American shipping, and these people say that the passage of the 
bill will rapidly upbuild the American merchant marine. It 
represents the views of the most patriotic and practical states- 
men in Congress who are friendly to American shipping. It 
conforms to the repeated recommendations in President Mc- 
Kinley's annual messages to Congress. It has the indorsement 
of nearly three hundred of the most rejnesentative commercial 
and agricultural organizations in the country. It has been wide- 
ly commended and its passage persistently urged "by the press 
in all sections of the country. It has been bitterly opposed by 
foreign newspapers, especially British, it is relentlessly opposed 
by foreign shipx>ing- interests, which see in it a menace to their 
present monopoly of our foreign carrying, and it is opposed by 
free traders and free-trade newspapers all over the United States. 

Brief Summary of Important Details of the Bill. 

The legislation and policies in force abroad were carefully con- 
sidered in the preparation of the bill now upon the Senate and 
House calendars, and it is so drawn as to g'ive American ships 
an equal chance in eonrpetition with the cheax^er-built, subsi- 
dized and bountied shipping- of other nations in our foreign 
trade. Conditional upon the building" and putting' into operation 
of new tonnag-e equal to 25 per cent of that for which compensa- 
tion is sought, owners of existing American vessels are to obtain 
a contract from the Secretary of the Treasury entitling them to 
a fixed amount of compensation for ten years, so long- as their 
vessels are in operation for the foreign trade, and carrying ex- 
port cargoes equal to one-half their capacity. Such foreign-built 
vessels as were owned by American citizens prior to January 1, 
1900, are to be granted American registry for ten years and to re- 
ceive one-half as much compensation as is paid to American ves- 
sels, if their owners build and put into operation American ton- 






OUR MERCHANT MARINE. 147 

nage equal to that admitted. American vessels built subsequent 
to January 1, 1900, are to receive compensation under twenty- 
year contracts, as are such vessels as were, prior to January 1, 
1900, being 1 built abroad for American citizens, provided equal 
tonnage to that so built shall be built in the United States by 
their owners. The act remains in force for ten years. Payments 
are not to exceed nine million dollars a year. Should the amount 
due the vessels exceed nine million dollars then the act pro- 
vides for pro-rating- the amount to be paid to each vessel so as 
to keep the payment within the maximum sum provided. This 
provision places no limit upon the number of vessels that may 
be built in the United States and share in the compensation, 
it only limits the total sum to be annually paid. Nor does it- 
admit any foreign-built vessel to American registry subsequent 
to its passage. Its purpose is to secure the construction of all 
the ships hereafter required for our foreign carrying in the 
United States. The rates of compensation are uniform for all 
vessels, sail and steam, under 12 knots speed, and are fixed at 
iy 2 cents per gross ton per hundred nautical miles sailed out- 
ward and inward for the first 1,500 miles on a foreign voyage and 
1 cent per gross ton per hundred nautical miles sailed thereafter. 
For vessels over 12 knots speed extra compensation, based upon 
extra cost of operation, is provided. All vessels are to carry the 
mails free of charge. One-fonrth the crews must be American 
citizens, and for each thousand gross tons of shipping one Amer- 
ican boy is to be carried and educated in seamanship and navi- 
gation. Small bounties are provided for deep-sea fishing vessels 
and their American crews. The bill provides that the vessels re- 
ceiving compensation shall be available for charter or purchase 
by the United States whenever needed, and no such vessel can 
be sold to foreigners without the consent of the Secretary of the 
Treasury. 

Favoritism. Under the Bill Impossible. 

In proportion to service rendered each vessel receives the same 
compensation. Any vessel may compete with any other vessel on 
any route or in any trade. All classes of vessels are encouraged, 
the fast mail-carrying steamship and the slow cargo-carrying 
sailer. Xo vessel can be profitably operated for the Government 
compensation alone. In no case does the compensation provided 
exceed 20 per cent of the operating expenses of the vessel. In 
answer to the allegation that certain lines are so favored as to be 
given the larger part of the subsidy, which is untrue, it may be 
said that the vessel, or the line, or the corporation, rendering the 
greatest service will receive the greatest compensation. 

During sixty years Great Britain has expended in postal sub- 
sidies over $240,000,000, and is to-day the controlling sea-power. 
If in thirty years the United States spend a like sum, at the 
end of that period this nation will rank with Great Britain as a 
maritime power. The total sum the United States may pay un- 
der this bill during all the years it is to be in operation will not 
be as great as the sum paid to foreigners in the past two years 
for the carriage of our imports and exports. 

It should be said that the policies of discriminating duties and 
of export bounties were carefully considered and rejected on the 
ground that they would involve the rupture of nearly forty 
treaties now in force between the United States and other na- 
tions, would lead to endless confusion, bitterness and retaliation, 
and in the end would, it is believed, fail to accomplish the ob- 
jects sought. On the other hand, the bill under review is drawn 
in accord with policies now pursued by other nations, and which 
cannot provoke antagonisms and reprisals, besides which, in 
addition to commanding the support of the most experienced 
and practical statesmen in Congress, it is also indorsed by the 
shipping interests of the whole country, upon whom, in the end, 
the nation must rely to make its operation successful. 

The bill has yet to pass the crucible of debate in both houses 
and will thus have the additional benefit of the very best judg- 
ment of the members of those bodies, who may be relied upon 
to so finally shape the measure that it will prove of the greatest 
benefit to all classes. 



THE TRUE FRIEND OF LIBERTY. 

Attitude of the Democratic and Republican Parties Respec- 
tively Relative to the Colored Race in the United States — A 
Brief Historic Retrospect. 

Persistent attempts have been made to create dissatisfac- 
tion among- the colored population of the countr}'" by mis- 
representing- the intentions of the Republican party touching 
the treatment of the inhabitants of the Philippines and Porto 
Rico on one hand, and by depreciating- its attitude toward the 
American negro on the other. Both the history of the party in 
the past and the course of its actions at the present time expose 
the falsity of these charges. Prior to the accession of the Re- 
publican party to power a race of 4,000,000 souls had suffered the 
wrongs and cruelties of human slavery, with no redress either in 
the courts, in Congress, or at the bar of public opinion. In all 
the years from 1619, when the first cargo of slaves was landed at 
Jamestown, Va., to 1856, when the Republican party had its 
birth, both organic and statutory law formed an imxjassable bar 
to negro hopes and ambitions. But with the birth of that party 
a marked change occurred. It is unnecessary to recount the 
causes which led up to the war of the rebellion. (Suffice it to 
say, as a result of that war, under the leadership of a Republican 
President, supported by a Republican Congress, 4,000,000 negroes 
were emancipated from slavery, invested with citizenship, and 
made an integral part of this great Republic, to share in its glo- 
ries and opportunities, bound only by the limitations of individ- 
ual capacity and worth. Unwilling, however, to rest the se- 
curity of the negro's rig'hts upon mere legislative enactment, the 
Republican party, through the co-operation of Repuolican States, 
gave to negro citizenship the supreme sanction of Constitutional 
guaranty. It was only then that the Declaration of Indepen- 
dence, now so ostentatiously quoted by the Democracy as the 
embodiment of their party principles, but which for nearly 100 
years had been ignored and repudiated by their party practices, 
first became the true expression of our national policy. 

Following this change in the political status of the colored 
population came a period' of preparation for citizenship. Thou- 
sands of Northern men and women, schooled, under the tutelage 
of Republican environment, in the works of philanthropy and 
justice, dedicated their money, their time, and ev'eii their lives 
to the education and elevation of those emancipated millions. 
Hence the colored school and the colored church under the 
guidance of white philanthropists Sprang into existence, only 
to be followed by similar institutions organized and controlled 
by colored citizens. But this leaven of intelligence could never 
have been imparted to the black masses of the South but for 
the opportunities first opened as a direct result of Republican 
principles and policies. 

No more striking contrast as to the attitude of the two great 
parties touching their .adherence to the principle that "all men 
are created equal" can be made than the course of events North 
and South during the past quarter of a century. In the worth, 
where Republicanism is strongest, colored citizens, although a 
minority of the population, are given participation in the control 
of municipalities, counties and States', and are frequently elected 
to public office in these respective units of our governmental 
system; in the South, the stronghold of Democracy, the polnt^rl 
citizen is being systematically disfranchised and barred from 
effective participation in the conduct of public affairs, and each 
year witnesses a narrowing of his political and civil rights. Pro- 
ceeding upon the recognition of the equality of all men before 
the law, it has been the uniform practice of the Republican party 
in State and nation to co-operate with the negro in his desire 
to become a useful citizen. Thus his participation in official life 
has increased with the intelligence of the race, until to-day the 
number of colored citizens in the service of the Government ex- 
ceeds both in number and importance of positions occupied that 

148 



COLORED CITIZENS HONORED BY THE PRESIDENT. 149 

of any previous Administration. According- to reliable sources 
of information, there were in 1899 the following" Government 
positions occupied by colored citizens: 

Colored Citizens in the Service of the Government. 



I Army 

* Post-Office Department 

Interior Department 

Printing Office 

District of Columbia 

Consular Service 

State Department (estimated) 

Navy Department 

War Department , 

Treasury Department 

Agricultural and Executive Departments 
Total 



15,868 



1\ O. OI 

positions. 


Salaries. 


*15,050 


$4,751,072 


34 


24,680 


200 


271,000 


168 


117,600 


75 


55,260 


11 


25,000 


25 


20,000 


25 


20.000 


40 


30.000 


210 


200,000 


30 


25,000 



5,538,612 



♦Including 266 colored officers, by far the largest in the history of the 
country. 

In addition to this list may be added the Federal appointments 
given to colored men by which the aggregate of salaries is vastly 
increased. The following- list shows the names and positions of 
the more eminent colored appointees of President McK'mley: 



Federal Appointments Given to Colored Men. 

J. W. Lyons, Register of the Treasury. 

H. A. Rucker, collector of internal revenue, Atlanta, Ga. 

J. H. Deveaux, collector of customs, Savannah, Ga. 

C. C. Wimbish, collector of port, Atlanta, Ga. 

I. J. McCottrie, collector of port, Georgetown, S. C. 
R. R. AVright, paymaster in Army. 
Rev. C. T. Walker, chaplain in Army. 
Dr. George C. Stoney, surgeon In Army. 
E. R. Belcher, deputy collector customs, Brunswick, Ga. 
M. P. Morton, postmaster, Athens, Ga. 
I. H. Lofton, postmaster, Hogansville, Ga. 
J. T. Jackson, postmaster, Darien, Ga. 
Mrs. E. L. Bamfleld, postmistress, Beaufort, S. C. 
Dr. A. M. Curtis, surgeon in chief, Freedmen's Hospital. 
John R. Lynch, paymaster in Army. 
James Hill, register of lands, Jackson, Miss. 
Frank P. Brinson, postmaster, Duncansville, Miss. 
Thomas Keys, postmaster, Ocean Springs, Miss. 
H. P. Cheatham, recorder of deeds, District of Columbia. 
John C. Dancy, collector of port, Wilmington, N. C. 
Dr. J. E. Shepard, Internal-Revenue Service, North Carolina- 
Rev. O. L. W. Smith, minister to Liberia. 
Rev. B. W. Arnett, jr., chaplain in Army. 
John T. Williams, consul. Sierra Leone, Africa. 
Mrs. S. E. Jones, postmistress, Bladen County, N. G. 
Colin Anthony, postmaster, Scotland Neck, N. C. 
Joseph E. Lee, collector of internal revenue, Florida. 

D. N. Pappy, collector of port, St. Augustine, Fla. 
Dr. L. W. Livingston, consul. Cape Haitien, Haiti. 
W. F. Powell, minister to Haiti. 

Robert Pelham, special Indian agent. 

J. C. Leftwich, receiver of public money, Montgomery. Ala. 

H. V. Cashln, receiver of public money, Huntsville, Ala. 

R. A. Parker, Internal-Revenue Service, Alabama. 

Dr. A. M. Brown, surgeon in Army. 

Rev. I. Dawson, postmaster. Eutaw, Ala. 

M. W. Gibbs, consul, Tamatave, Madagascar. 

J. E. Bush, receiver of public money, Little Rock, Ark. 

Fred. Havis, postmaster, Pine Bluff, Ark. 

M. B. Van Horn, consul, St. Thomas, Danish West Indies. 

Dr. George H. Jackson, consul, La Rochelle, France. 

John P. Green, superintendent of stamp division, Post-Office Dept. 

C. L. Maxwell, consul, Santo Domingo. 

W. T. Anderson, a Regular Army chaplain. 

H. Y. Arnett, comparer, office of recorder of deeds, District of Columbia. 

E. P. McCabe, Oklahoma. 

N. T. Velar, postmaster, Brinton, Pa. 

J. H. Jackson, postmaster, Pennsylvania. 

J. N. Ruffin, consul, Asuncion, Paraguay. 

Gen. Robert Smalls, collector of port, Beaufort, S. C. 

F. J. Baker, postmaster, Lake City, S. C. 
J. E. Wilson, postmaster, Florence, S. C. 

T. C. Walker, collector of port, Tappahannock, Va. 

R. T. Greener, consul. Vladivostock. Russia. 

Dr. H. W. Furniss, consul, Bahia, Brazil. 

W. A. Gaines, Internal-Revenue Service, Kentucky. 

Dr. J. O. Holmes, pension examiner. Kentucky. 

J, R. Spurgeon, secretary legation, Liberia. 



Colored Men in the Spanish-American War — President Mc- 
Kinley Gives Them Prominent Assignments. 

Wttien hostilities broke out between the United States and 
Spain in 1898, President McKinley did not hesitate to call upon 
valiant colored men to assist in maintaining national honor and 
defending- the country's flag. Several volunteer regiments were 
organized at once and were officered by some of the brightest 
men of the race. 

In this struggle the negro was given a man's chance, and a 
lion's share of the glory is his. In Cuba the negro soldiers dis- 
tinguished themselves by signal bravery and daring, the charge 
at San Juan Hill being a lasting monument to their valor and 
courage. As a result of this memorable battle many were pro- 
moted from the ranks to executive positions. Those who were 
not assigned to* duty in Cuba served their country by discharg- 
ing important guard and picket duty. At the close of the war 
with Spain the bulk of the regiments, white and black, were 
mustered out. The negro troopers of the regular army, com- 
prising- the Ninth and Tenth Cavalry and Twenty-fourth and 
Twenty-fifth Infantry, remained in the service. 

Appreciating the superior services of the negro troops m tne 
recent war with Spain, President McKinley decided to increase 
the number of negro regiments in the regular or standing army, 
and on the 8th of September, 1899, issued an order for the organ- 
ization of two new regiments of infantry, to be composed of 
colored men. The Democrats protested against this action, but 
to no avail. Two regiments were called for. The regiments have 
been designated as the Forty-eighth and Forty-ninth Volunteer 
Infantry, and were organized, respectively, at Fort Thomas, Ivy., 
and Jefferson Barracks, Mo. 

Thus the war with Spain, in addition to its primary object, 
served a two-fold purpose. It emphasized the policy of the Re- 
publican party in according to the colored citizen places of honor 
in war as well as in peace; and the black soldier in that war, by 
his intrepidity and daring, by his patriotism and valor, proved 
to the world that citizenship had not been unworthily bestowed. 

In face of the foregoing facts, the colored voter, the anti-im- 
perialist and others doubtful of the wisdom of continuing the 
control of the present Administration may well be asked 
whether or not the rights of the American negro at home and the 
destinies of the inhabitants of those islands noAv belonging to 
the United States are not safer with the Republican party, which 
by tradition and legislation has identified itself with the cause of 
human freedom and universal opportunity, than with the De- 
mocracy, which for years has been the instrument of human 
slavery, as it is now in the South that of human degradation. 
The Republican party believes, and its acts attest the sincerity of 
those beliefs, that the nation can achieve its greatest grandeur 
and best preserve its sacred institutions when every man is 
given a chance to occupy any place in the national life to which 
his attainments, his character and his ability entitle him. Upon 
the record of its treatment of American citizens of whatever 
race, color or nativity, it rests its claim upon the confidence of 
the country as to its intentions in the islands recently added to 
the domain of the United States. Neither the speciousness of 
Democratic platform deliverances, the eloquence of Democratic 
oratory nor the idle generosity of Democratic promises can ob- 
scure the Democracy's unenviable record upon every question 
that pertains to human rights. "Charity begins at home," and 
until that party accords justice to' all the inhabitants of the 
States under its control it cannot claim the suffrages of the col- 
ored people of this country who seek amelioiation of their civil 
and political status nor of that greater body of American citizens 
whose only interest in the issue of the present struggle is the 
holior and stability of our own nation and the welfare and ad- 
vancement of those peoples who have recently become the wr.rds 
of the American nation. 

150 . 



SUGAR PRODUCTION, IMPORTATION 
AND CONSUMPTION. 

Beet-Sugar Growers of the United States Need Not Fear the 
Competition of the Tropics and Their Cane Sugar. 

A series of tables on pages 200 to 262, presents some im- 
portant ith reference to sugar, of which the 
United States is the world's largest consumer as to 
quantity and in which the people are largely interested 
both because of the large amount of money now ex- 
ed abroad for that article, the possibility of its pro- 
duction at home and the relative prices of raw and refined 
sugar at the present time and in earlier years. The tables show 
the per capita consumption in the United States, the imports, 
the home consumption of cane and beet sugar, the per cent 
which home production forms of the total consumption, the 
world's production of beet sugar, the per cent produced from beet 
and cane respectively, and the price per pound of raw and re- 
fined sugar respectively in each year from 1S79 to l->99. 

It will be seen that the imports of sugar during the twenty- 
period have doubled in quantity and that the home produc- 
tion has but kept pace with the increased consumption, the per- 
centage of the total consumption which is supplied by the home 
producers differing little in 1S95 and 1899 from that of the begin- 
ning of the period under consideration. 

Will Sugar from Cuba, Porto Rico and the Philippines Affect 
the Beet Sugar Interests? 

Some interesting facts regarding the beet sugar produc- 
tion of the United States and in the world are also shown 
by a subsequent table. It will be seen by an exam- 
ination of the statement regarding the world's production 
of sugar that beets produced, in IS 79, 45 per cent of the world's 
sugar, and in 1899-1900, 66 per ent. An examination of the 
smaller table which follows will show that in 1S40, when slave 
labor produced nearly all the cane sugar of the world, beet-s. 
which were grown in the temperate zone and chiefly by free 
labor, were only able to produce 4.35 per cent of the world's 
sugar, although the world had then known for a hundred years 
that sugar could be produced from beets. Between 1^40 and 1870, 
slavery ceased to exist, and cane sugar production in the tropic* 
was necessarily carried on by free labor, placing it in that par- 
ticular on a level with beet sugar. Simultaneously with this de- 
velopment of the withdrawal of slave labor from the production 
of cane sugar, beets increased their percentage of the world's 
sugar supply from 4.35 in 1840 to 14 per cent in 1850, 20 per 
ent ii per cent in 1870, and, as above indicated, they now 

produce GO per cent, or two-thirds of the world's sugar. 

This fact shows that the farmers of the temperate zone who 
desire to grow beet sugar need no longer fear the competition 
of the tropics in the production of sugar, and especially if a 
liable protection is granted them, as in the case in the 
is indicated by the rapid growth of beet 
sugar production in the United States shown in the ac- 
companying table. The farmers of the country have been en- 
couraged by the Republican party in their ambition to produce 
the sugar of the country. The experience of other nations and of 
other parts of the temperate zone has shown that sugar can be 
produced from beets in great quantities and at very small cost 
and can successfully compete with cane sugar under the equal 
conditions of free labor in the production of cane as well as beet 
sugar. Under the stimulus given to the beet sugar production 
by Republican legislation, beet sugar factories sprang up all over 
the United States and the production of beet sugar has already 
reached large proportions and is increasing with wonderful 
rapidity. 

151 



152 BEET SUGAR VERSUS CANE SUGAR. 

The Porto Rican Act and the Beet Sugar Question. 

The first thought which came to the minds of the farmers 
when the events following the war for the liberation of 
Cuba brought under our control certain tropical areas was 
whether or not the possession or control of tropical ter- 
ritory by the United States would injure, or perhaps destroy, 
the opportunities which they believed they had almost within 
their grasp for supplying the $100,000,000 worth of sugar which 
the people of the United States annually consume. This fear — 
if it reached the stage in which it could be called by that name 
— was answered in the negative by the Republican party when it 
passed the Porto Rican bill. The Democratic party fought with 
all of its power to prevent the enactment of that measure which 
placed a duty upon articles coming into the United States from 
Porto Eico. That duty was small, but it was an explicit declara- 
tion by the Republican party that it proposed to retain the 
power to fix such tariff as it might deem judicious against the 
products of cheap tropical labor wherever located and under 
whatever conditions. In other words, it was a distinct promise to the 
farmer that he need not fear that the Republican party would permit the cheap 
labor and cheap sugar of any tropical territory to be brought in in a manner 
which would destroy the infant industry of beet sugar production which the 
fanners of the United States have, under the fostering care of the Republican 
party, been building up during the last few years. The farmers of the 
temperate zone can produce beet sugar successfully in competition 
with the sugar cane of the tropics when both are handled by free 
labor, and this advantage which the farmer of the temperate zone 
has will be strengthened in the United States so long as the Repub- 
lican party retains its control and is enabled to apply the protective 
principle in the interests of its farmers as it did in the case of the 
Porto Rican bill, but against which the Democrats turned their 
every energy. With a few years of moderate protection against the 
cheap labor of the tropics, the beet sugar industry in the United 
States will be placed fairly and squarely upon its feet and will be fully 
able to contend with the cane sugar industry of the tropics, while 
meantime the improved condition of labor in the tropics and 
the opportunities for better earnings which the guidance of the 
United States will give them will more nearly equalize the two 
systems of production. 

One further fact in regard to the world's production and 
producing capacity is worthy of consideration in this con- 
nection, and that is that nearly one-half of the sugar now being 
imported into the United States comes from the islands of the 
Pacific. The total importation of sugar into the United States 
in the twelve months ending with June, 1900, amounted to 
4,018,000,000 pounds, and of this amount 1,756,000,000 pounds 
were from the East Indies, the Hawaiian Islands and the Philip- 
pine Islands, thus indicating the possibilities of our Pacific ter- 
ritory to supply that portion of our consumption which it will be 
necessary to import until the farmers of the country are able to supply the 
home demand; and thus, instead of tending to other countries and other 
peoples the one hundred million dollars per year which we have been annually 
expending for foreign-grown sugar, it may be expending under the American 
flag and in a manner which will benefit the people of those islands, and inci- 
dentally those of our own people who may enter upon business enterprises in 
them. 

Reduced Cost of Refining. 

The final columns of the accompanying table, which show the 
average prices in New York of raw and refined sugar, are espe- 
cially interesting in view of the current belief that the people of 
the United States are required to pay an excessive price for re- 
fined sugar as compared with the cost of the raw material im- 
ported. A comparison of the prices of raw and refined in each 
year from 1879, prior to the organization of the sugar trust, with 
those of recent years, shows that the margin between raw and 
refined has been steadily reduced and averaged in 1899 just one- 
half cent per pound, against near]y two cents per pound in 1881 
and 1882. 



TIN PLATE MANUFACTURE. 

It has Kept Millions of Dollars at Home, Given Employment 
to Labor and Reduced the Price of Tin Plate. 

The American tin plate industry is the best illustration of the 
benefit of a protective tariff. It is for this reason that it is 
sing-led out by the Democrats for especially vicious attaek. The 
McKinley protective duty of 2.2 cents a pound went into effect 
on July 1, 1891. For years prior to that time there was a 
revenue tariff on tin plate of one cent a pound. Under it no 
tin plate could be made in the United States, our supply being 
all imported from Wales, which had a monopoly. The Welsh 
manufacturers had an understanding among themselves which 
amounted to a trust, and charged exorbitant prices. The duty, 
being a revenue one, was paid by the American consumer. The 
reduced duty of 1.2 cents in the Wilson-Gorman law went into 
effect on October 1, 1894, and caused a wage dispute which kept 
all the American tin plate works closed from that date until 
the latter part of January, 1S95, when they were put in opera- 
tion at greatly reduced wages. The American tin plate works 
were then enabled to operate under the existence of the Wilson- 
Gorman tariff law because: 

1. The industry had acquired great momentum under the Mc- 
Kinley law. 

2. Economies and new processes were introduced during that 
period, after great expenditures of time and money. 

3. There were heavy wage reductions. 

4. The Wilson-Gorman duty of 1.2 cents a pound was .2 cent 
higher than the old revenue duty. 

5. The general depression in the iron and steel and other in- 
dustries, caused by the Wilson-Gorman law, brought the raw 
materials of tin plate manufacture in the United States down 
to lower points than had ever been seen before. 

Up to July 1, 1891, when the McKinley tin plate duty became 
effective, over 500 tin mills were kept in practically steady 
operation in Wales. Since then there has been a continuous 
succession of strikes and lockouts. The number of mills in 
operation has fallen below 300 at times, and prices of tin plates 
in Wales were brought clown to a level formerly unknown. 
The Welsh tin plate trust was completely broken up. The fol- 
lowing table shows the decline in the Welsh tin plate trade, due 
wholly to the establishment of the American industry. 

The following table gives the imports of tin plate into the 
United States since .1889 in long tons: 

Year. Long Tons. 

1889 331,311 

1890 329,435 

189.1 327,882 

1892 268,472 

1893 253,155 

1894 215,068 

1S95 219,545 

1896 119,171 

1897 83,851 

189S 67,222 

1899 58,915 

The imports of the past three or four years have been confined 
almost entirely to tin plates which are re-exported in the form 
of cans containing oil, fruit, fish, meat, etc. By \the terms of 
the Dingley law 99 per cent of the duty originally paid on 
such tin plate is refunded by the Government on its re-export. 



153 



Manufacture of Tin Plate Since 1891. 

The following- table gives the production of tin plate in the 
United States in each calendar year since 1891: 

Year. Long Tons. 

1891 552 

1892 18,803 

1893 55,182 

1894 74,260 

1895 113,666 

1896 160,362 

1897 256,598 

1898 326,915 

1899. 397,767 

Prices of Tin Plate Since 1889. 

The following- table shows the highest and lowest prices in 
Wales of full weight, coke tin plate since 1889. The great decline 
caused by the American industry will be noted. The much 
higher prices in 1899 and 1900 were caused by the great advances 
in raw materials, especially steel and pig tin, which have oc- 
curred all over the world: 

Year, Lowest. Highest. 

1889 12s. 9d. 18s. Od. 

1890 13 3 17 3 

1891 12 6 12 6 

1892 11 9 12 3 

1893... 10 10% 12 6 

1894 10 3 11 

1895 9 9 10 9 

1896 8 10% 10 6 

1897 9 9" 10 3 

1898 9 9 10 6 

1899 11 15 6 

1900 (First half.) 15 16 9 

The following table gives the average price paid for full weight 
coke tin plate at New York each year since 1890; prices are for 
imported plates up to and including 1894 and for domestic plates 
since then: 

1S90 $5.15 

1891 5.30 

1892 5.34 

1893 5.15 

1894 4.57 

1895 3.66 

1896 3.63 

1897 3.26 

1898 2.99 

1899 4.50 

1900 (First half.) 4.9!) 

A Saving of $35,000,000. 

By making a careful estimate of what tin plate would have 
cost the consumer from the beginning of 1892 to the middle 
of 1900, had there been no American industry, and no protective 
tariff, and closely calculating what it actually has cost in these 
years, with the protective tariff and the American industry, it 
has been found that the country has saved to date fully $35,000,- 
000 throug-h the McKinley tin plate industry. Most oi this sav- 
ing was due to the American product selling at so much below 
the imported, but part was due to the lower prices at which 
the foreign was sold, on account of the competition, before the 
country made all the tin plate it needed. 

Earnings More Than Three Times Those in "Wales. 

Taking the average of all the tin mill employees, the wages 
paid in the United States average from two and a half to three 
times as much as in Wales. The best paid in both countries 

154 



TIN PLATE MANUFACTURE. 155 

are the skilled men in the hot mills, paid by the ton, including 
rollers, catchers, doublers, heaters and shearmen. In Wales the 
roller and catcher receiye $1.96 per ton; doubler, $1.16; heater, 
..1.09, and shearman, $0.-14, a total of $4.05 per ton. In the United 
Slates these men received in May and June, 1900, roller and 
catcher, $6.04 per ton; doubler, $3.16; heater, $2.94; shearman, 
$0.56; total, $12.70 per ton. This is 173 per cent more than the 
Welsh wages, but on account of the better machinery here the 
men are able to make fully one-fifth more output per day with- 
out, extra exertion, increasing their earnings to 228 per cent above 
the Welsh earnings, so that their earnings are more than three 
and a quarter times the Welsh workers' earnings. 

Wages Reduced Under Wilson Law and Increased Under 
Dingley Law. 

During the existence of the Mclvinley duty these five skilled 
men received $11.09 per ton; when the Wilson-Gorman duty went 
into effect their wages were reduced to $9.57 per ton, a reduc- 
tion of 14 per cent. As stated, these men in May and June, 
1900, received $12.70 per ton, which is an advance of 33 per cent 
over the Wilson-Gormon wages and of 15 per cent over the Mc- 
lvinley wages. These skilled men are thoroughly organized, and 
prevented a greater wage reduction when the Wilson-Gorman 
duty went into effect, at which time the wages of the common, 
unskilled laborer were reduced in greater ratio, in order to strike 
the proper average to permit the American industry to live. 

The report of the Bureau of Industrial Statistics of the De- 
partment of Internal Affairs of the State of Pennsylvania for 
the year 1895, when the Wilson-Gorman law was in force, gives 
the average number of persons employed in the tin plate works 
of the State during the year as 3,031, with daily average wages 
of $1.78. Accordiug to the same authority the average number 
of persons so employed in 1899, under the Dingley law, was 
8,008, who received average daily wages of $2.33. This is an 
increase of 164 per cent in the number employed, and of 31 
per cent in the average wages. 

Less Advance in Price of Finished Article Than in the Material 
Erom Which Manufactured. 

Tin plates are considerably higher in price now than they 
have been, but this is due entirely to advances in wages and in 
the cost of raw materials, caused by the iron and steel boom 
which has extended all over the world. The price in New York 
has never been more than 73 per cent above the lowest price 
on record; during the boom pig tin advanced to 34% cents a 
pound, or 174 per cent above the lowest price on record of 12% 
cents, and steel slabs to $41 a ton, or 193 per cent above the 
lowest price on record of $14. These are the principal raw 
materials in tin plate making. Bessemer pig iron advanced to 
$24 a ton, or 174 per cent above the lowest price on record of 
$8.75; steel tank plate advanced to $3.25 per hundred pounds, 
or 261 per cent above the lowest price on record of 90 cents 
a hundred. None of these articles are controlled by monopolies 
or trusts of any description. The average advance of all iron 
and steel products has been considerably greater than the ad- 
vance in tin plate. The hig-hest price of tin plate in Wales 
has been nearly double the lowest price on record. 

Even at the moderate advance which has occurred, tin plate 
is very cheap. At present New York prices the value of the 
tin plate needed to make the following articles is: 2 lb. fruit 
can, 1.255 cents (about 1% cents) ; 3 lb. fruit can, .1.789 cents 
(about 1% cents); y 2 pint tin cup, 1.056 cents; 1 quart tin cup, 
1.778 cents (about 1% cents); 3 quart dinner pail, 5.771 cents; 
the same, including 1 pint tin cup, 7 cents. One dollar's w T orth 
of tin plate will make any of the following items: 80 two-pound 
fruit cans, 56 three-pound fruit cans, 95 half-pint tin cups, 56 
one-quart tin cups, or 14 three-quart dinner pails with a pint 
tin cup to each. 

If the duty were taken off tin plate it would be necessary at 
once for the wages paid in the American tin plate factories to 
be reduced to the level of the wages paid in the Welsh factories, 
and not onlj^ this, but wages would have to be reduced also in 



156 TIN PLATE MANUFACTURE. 

a great many of the other industries which furnish raw mate- 
rials to the tin plate industry. If workmen could not be se- 
cured at these greatly reduced wages it would be necessary for 
the tin plate manufacturers to move their plants to Wales where 
such workmen could be secured. 

There are fully 17,000 people employed directly in the tin plate 
factories of the United States, receiving fully $10,000,000 a year 
in wages; the number is still larger of those employed in the 
steel works, blast furnaces, ore and coal mines, box factories, 
acid works, machine shops and many minor industries, engaged 
in furnishing supplies to the tin plate works, and the employ- 
ment of all these would be seriously curtailed by a change of 
duty injuring the tin plate industry. 



In this contest, patriotism is above party and national honor 
dearer than any party name. — Maj. McKinley at Canton, 1896. 

You cannot get consumers through the mints; you get them 
through the factories. — Maj. McKinley to delegation of far- 
mers, Aug. 24, 1896. 

We have lower interest and higher wages, more money and 
fewer mortgages. — President McKinley to the Notification 
Committee, July 12, 1900. 

Our domestic trade must be won back and our idle working 
people employed in gainful occupations at American wages. — 
Major McKinley to the Notification Committee, 1896. 

Our workshops never were so busy, our trade at home was 
never so large, and our foreign trade exceeds that of any 
like period in all our history. — President McKinley at Chi- 
cago, Oct. 10, 1899. 

Abating none of our interest in the home market, let us 
move out to new fields steadily and increase the sale for our 
products in foreign markets. — President McKinley to Com- 
mercial Club, Cincinnati, Oct. 30, 1897. 

The employer is looking for the laborer and not the laborer 
for the employer, and I am glad to note, from one end of the 
country to the other, a universal demand for labor. — Presi- 
dent McKinley at Milwaukee iron foundries, Oct. 17, 1899. 

My couirtrymen, the most un-American of appeals is the 
one which seeks to array labor against capital, employer 
against employee; it is most unpatriotic and is fraught with 
the greatest peril to all concerned. — Maj. McKinley at Canton, 
1896. 

Labor is indispensable to the creation and profitable use 
of capital, and capital increases the efficiency and value of la- 
bor; whoever arrays the one against the other is the enemy 
of both. —Maj. McKinley to Pennsylvania steel workers, Sept. 
19, 1896. 

Integrity wins its way everywhere, and what I do not want 
the working-men of this country to do is to establish hostile 
camps and divide the people of the United States into classes. 
I do not want any wall built against the ambitions of your 
boy, nor any barrier put in the way of his occupying the 
highest places in the gift of the people. — President McKinley 
to Chicago Bricklayers' and Stone Masons' Union, Oct. 10, 
1899. 

The hum of industry has drowned the voice of calamity, 
and the voice of despair is no longer heard in the United 
States, and the orators without occupation here are now look- 
ing to the Philippines for comfort. As we opposed them when 
they were standing against industrial progress at home, we 
oppose them now as they are standing against national duty 
in our island possessions in the Pacific. — President McKinley 
at Kewanee, 111., Oct. 7, 1899. 



THE DEPARTMENTS UNDER PRESIDENT 
McKINLEY — A REVIEW OF THEIR 
WORK DURING THE THREE EVENT- 
FUL YEARS, 1897-1900. 

THE STATE DEPARTMENT. 

Foreign Relations of the United States March 4, 1897-May 1, 
1900 — The War With Spain— The Samoan, Hawaiian, and 
Alaskan Incidents — The Open Door in China — The South 
African War — The Alleged Alliance With Great Britain. 

At the time of President McKinley's inauguration the most im- 
portant problem confronting the new Administration in its 
foreign relations was the long-continued insurrection in the 
island of Cuba, with the inconvenience and cost imposed upon the 
Government of the United States by the endeavor to enforce its 
laws and protect the property of its citizens. 

The War With Spain and the Peace of Paris. 

Throughout a period of extreme tension of public feeling 
caused by the horrors of the conflict in Cuba, the Government 
continued its polio}' of patience in dealing with 'the trying 
situation. 

The instructions given to Minister Woodford for his guidance 
at Madrid directed him to impress upon the Government of Spain 
the sincere wish of the United States to lend its aid in securing 
a peace honorable alike to Spain and the people of Cuba. A new 
administration in the Spanish Government encouraged the hope 
that a change of policy might be adopted which would result in 
the pacification of Cuba, but this hope was doomed to disap- 
pointment. After long and patient negotiation in the interest of 
peace, to the evils which had so long pressed upon this country 
in consequence of the insurrection was added a series of incidents 
that rendered necessary, on April 21, 1898, an armed intervention 
to terminate the humiliation imposed by the condition of affairs. 
The brief and brilliant period oi >;ar with Spain was followed 
by preliminaries of peace, signed on August 12, providing for the 
relinquishment of sovereignty over Cuba, the cession of Porto 
Rico and other islands belonging to Spain in the West Indies, 
together with an island in the Ladrones, to be selected by the 
United States, and the occupation of territory in the city and 
vicinity of Manila, pending the conclusion of a treaty of peace 
which should determine the control, disposition, and government 
of the Philippines. 

When the Commissioners of the United States, sent to Paris to 
negotiate a treaty of peace with the representatives of Spain, 
confronted the problem of settlement, it became evident that the 
interests of the population of (lie Philippine Islands, the peace of 
the world, and the consistent completion of the task of pacifica- 
tion undertaken by the Government alike demanded the cession 
of the entire Philippine Archipelago lo the United States. At 
the same time justice to a foreign foe and the magnanimous 
spirit of the American people seemed to require a recognition of 
the actual expenditures of Spain in the internal improvement of 
the islands, and the sum of $20,000,000 was agreed upon as a suit- 
able compensation for the transfer of this great archipelago, 
whose extensive public lands, estimated at one-half the whole 
area of the islands, rich ia mineral wealth and forests of valuable 
timber, will prove abundantly sufficient to justify this expendi- 
ture and to provide resources for a future government. 

The Hawaiian, Samoan, and Alaskan Questions. 

The annexation of the Hawaiian Islands to the United States, 
the cession of Guam, and the acquisition of the Philippines ex- 
tend the sovereignty of this Government across the Pacific Ocean 

157 



158 WORK OF THE STATE DEPARTMENT. 

and provide a series of valuable naval stations and entrepots of 
commerce which promise to faeiliate incalculably the oriental 
trade and secure the pathway to an opening market of increasing 
importance. The settlement of the Samoan question by the dis- 
solution of the tripartite protectorate which had proved' so fertile 
in embarrassments, and the undisputed sole occupation of the 
island of Tutuila, with its admirable harbor, the best in the 
South Pacific, by the United States, add greatly to the influence 
and security of this country in that ocean. 

The exorbitant claims of the Canadian government with refer- 
ence to the Alaskan boundary, unreasonable and unhistorical in 
their extent, though impeding- and for the time thwarting the 
efforts of this Government to adjudicate in a mutually advanta- 
geous manner the differences with the Dominion, which had been 
referred to a joint commission, have nevertheless been firmly met 
by the President, who has thus far preserved our important terri- 
torial rights by the modus vivendi of October 20, 1899, and de- 
feated the attempt to destroy the continuity of our Alaska coast 
line and to divide the control of the Northern Pacific. 

The Interoceanic Canal. 

Thus extended and maintained in the Pacific, the territorial 
jurisdiction of the United States has been augmented in the At- 
lantic by the cession of Porto Rico, which, with the occupation 
of Cuba temporarily, held in trust for the future, serves to guard 
the Gulf of Mexico and to extend our influence in the West Indies. 

The necessary link to connect our Atlantic and Pacific inter- 
ests, continental as well a,s insular, has seemed to be an inter- 
oceanic canal, owned and controlled by the Government of the 
United States. An apparently irremovable barrier to the accom- 
plishment of this object has existed in the Claytoii-Bulwer treaty, 
which since 1850 has bound this Government not to underake 
such a project as a national enterprise. 

Throug'h all the political administrations since the negotiations 
of that convention no American President or Secretary of State 
has ever denied the existence and the consequent obligation of 
that treaty during its continued recognition. Whatever may be 
said of its ''voidability," its existence as a solemn compact binds 
the conscience and honor of the American Government and peo- 
ple until it is legally annulled. In a convention dated February 
8, 1900, this Government procured the voluntary consent of 
Great Britain to modify essentially the terms of that agreement, 
thereby liberating the United States from its previous engage- 
ment not to construct or own an interoceanic canal. As the 
canal must of necessity lie wholly within territory foreign to the 
United States, it is evident that it must be of a neutral character 
and not to be employed as an agency of Avar. This convention is 
now before the Senate of the United States awaiting its action. 

The Peace Conference at the Hague. 

Following immediately after the brilliant naval and military 
achievements of the Spanish-American war, the Peace Confer- 
ence at The Hague afforded the Government of the United States 
an opportunity of expressing the pacific disposition and the love 
of justice which animate the American j)eople by proposing, 
through its delegates, a plan for international arbitration, which, 
reinforced by other similar propositions, resulted in a convention 
for the pacific settlement of international disputes signed by the 
plenipotentiaries of twenty -two sovereign States, including all 
the great powers of Europe. 

The United States, in signing this great compact, at the same 
time insisted on reaffirming, in the document itself, our adher- 
ence to the Monroe Doctrine, and thus gained for that vital prin- 
ciple of our policy the recognition of the world. 

Without cherishing illusions with regard to the practicability 
of universal peace, it is yet possible to believe that the existence 
of a permanent international tribunal before which differences 
may be adjudicated in their incipiency and before their accumu- 
lation becomes serious will exercise a profound influence toward 
a better and more rational solution of disputes between nations. 



WORK OF THE STATE DEPARTMENT. 159 

The numerous arrangements for the arbitration of special ques- 
tions which the Department of State has recently been able to 
effect give evidence of a growing- disposition to apply the prin- 
ciples of peaceful adjudication to the solution of controversies 
wherever practicable. 

The Question of the "Open Door" in China. 

The diplomatic history of our country affords no better ex- 
ample of successful endeavor to secure by mutual consent an evi- 
dent right than that offered by the recent correspondence carried 
on under the President's direction for maintaining the "open 
door" of trade in China. The establishment of spheres of in- 
fluence in that ancient Empire by European States, supported by 
the control of important seaports, has seemed to many to forbode 
the practical partition of that country among foreign powers and 
the effective appropriation of commercial privileges in China to 
the exclusion of all not able or willing to claim a portion for 
themselves. By a timely series of diplomatic notes Secretary 
Hay has obtained assurances from the Governments of Germany, 
Great Britain, Italy, Japan, and Russia, by which they pledge 
themselves not to interfere with the perfect freedom of trade in 
those portions of China where their influence may prevail. The 
unobstructed enjoyment of the privileges of trade is thus secured 
to American manufacturers and merchants by the free consent 
of the powers. 

Perhaps the most important result of this unprecedented 
negotiation may prove to be that all the powers, feel- 
ing the assurance of unrestricted commerce, may be 
disposed to accentuate to a less degree, or even to 
abandon, that policy of commercial annexation which 
has apparently been promoted bj' the absence of such 
a just and reasonable understanding. The American claim to 
unrestricted facilities of trade in China is not a. special favor 
asked and granted, or demanding reciprocity. It is based on 
treaty rights which promise equal treatment to Americans with 
the citizens or subjects of the most-favored nation. The recog- 
nition of these rights have been obtained at a moment when they 
were apparently about to be ignored. 

The South African War. 

Regarding the unfortunate conflict between Great Britain and 
the Republics of South Africa, this Government has faithfully 
observed the laws of neutrality and strictly followed the tra- 
ditional policy of nonintervention which has always character- 
ized the conduct of the United States with respect to foreign 
wars. In a declaration offered to the peace conference at The 
Hague by the American delegation, effectually obtaining the 
first recognition of theMonroe doctrine by an international body, 
the "traditional policy of not intruding upon, or interfering 
with .or entangling itself in the political question or policy 
* * * of any foreign State" is reaffirmed, together with a new 
avowal of the attitude of the United States toward purely Ameri- 
can questions. This consistent neutrality, steadily maintained 
in spite of the impulses of sentiment which often endanger pub- 
lic interests, has rendered more available the mediatorial action 
of the United States upon the joint request of both belligerents 
in case an opportune occasion should arise. 

In his message to Congress of December 5, 1899, President 
McKinley was able to say: 

Bad cirrnmistanoes' suggested that the parties to the quarrel would 
have welcomed any kindly expression of the hope of the American peqple 
that war might be averted, good offices would have been gladly tendered. 

As these circumstances did not arise, no occasion was pre- 
sented for tendering good offices until a request was received 
from the Republics of South Africa (March 10, 1900) that the 
United States should intervene to procure a cessation of hostili- 
ties. A similar request was simultaneously sent to the leading 
European governments, but no actitm was taken by them. Tin- 
Government of the United States, whose attitude rendered it 
peculiarly available for mediatorial services, immediately ad- 
dressed an offer of good offices to Lord Salisbury, expressing 



160 NO ALLIANCE WITH ENGLAND. 

"the earnest hope" of the President that a way to bring- about 

peace might be found, and adding- that the President-- 

would be glad to aid In any friendly manner to promote so happy a result. 

The indisposition of Great Britain to accept the good offices of 
the United States shows how futile were the proposals of philan- 
thropic persons in urging, unaware of the nature of international 
relations, the mandatory intervention of the United States, which 
would have destroyed its usefulness as a mediator and, if in- 
sisted upon by this Government, would have placed it in a bel- 
ligerent attitude toward Great Britain in violation of its prin- 
ciple and policy of neutrality. It is not to be presumed that 
any patriotic person could seriously entertain the desire of in- 
volving his country in the obligations and consequences of actual 
war on account of circumstances entirely foreign to the interests 
of the United States. The discretion of the American Congress 
m refusing to take sides by passing resolutions of sympathy 
with either belligerent has rendered the United States still avail- 
able as an ultimate mediator in this conflict, provided its serv- 
ices should ever be revoked by both combatants. Until they 
are thus desired, interference of any kind could only give offense 
and render nugatory the benevolent intentions of' this Govern- 
ment. 

"There Is No Alliance With England"— Secretary Hay on the 
False Charges Made Against the McKinley Administration— 
Lack of Real and Acceptable Issues Forces the Democratic 
Party to Present False Ones, Based on Groundless Assertions 
— Results Accomplished Incident to Spanish-American War. 

The fact that there has been repeated during recent discus- 
sions the false and unjust charge that the present Administra- 
tion has entered into a secret alliance with England justifies 
the publication of the following letter from Hon. John Hay, 
the present Secretary of State: 

Newbuky, N. H., September 11, 1899. 
Hon. Charles Dick, 

Chairman State Executive Committee, Columbus, Ohio. 

Dear Mr. Dick: I am sorry that my arrangements are such as to ren- 
der it impossible for me to accept your kind invitation to be present at 
the opening of the Ohio Republican State compaign at Akron on the 23d 
of September. I regret this the more as the occasion promises to be one 
of unusual interest. A stirring campaign and, I doubt not, a great victory 
await you. 

Our opponents this year are in an unfortunate position. They have lost, 
for all practical purposes, their political stock in trade of recent years. 
Their money hobby has all collapsed under thorn. Their orators still shout 
1G to 1 from time to time from the force of habit, but they are like wis- 
dom crying in the streets in one respect at least, because "no man re- 
gardeth them." With our vaults full of gold; with a sufficiency to meet 
the demands of a volume of business unprecedentedly vast and profitable: 
with labor generally employed at fair wages; with our commerce over- 
spreading the world; with every dollar the Government issues as good as 
any other dollar; with our finances as firm as a rock and our credit the 
best ever known it is no time for financial mountebanks to cry their nos- 
trums in the market place, with any chance of being heard. 

It is equally hopeless to try to resuscitate the corpse of free trade. The 
Dingley tariff, the legitimate successor of the McKinley bill— that name 
of good augury— has justified itself by its work. It is not only true that 
our domestic trade has reached proportions never before attained, but the 
American policy of protection, the policy of all our most illustrious states- 
men, of Washington and Hamilton, Lincoln, Grant and McKinley— has 
been triumphantly vindicated by the proof that it is as efficacious in ex- 
tending our foreign commerce as in fostering and stimulating our home 
industries. Our exports of domestic manufactures reached in this last 
fiscal year the unexampled total of .$360,000,000, an amount more than 
two hundred millions in excess of our exports ten years ago. These fig- 
ures ring the knell of those specious arguments which have been the re- 
liance of our opponents for so many years, and which are only fruitful in 
times of leanness and disaster. 

What is left, then, in the way of a platform? The regulation of trusts, 
which the Republicans can themselves manage, having all the requisite 
experience both of legislation and business; and, finally, the war, which— 
it seems — was too efficiently carried on and has been too beneficial to the 
nation to suit the Democratic leaders. We have been able to give in our 
time some novel ideas to the rest of the world— and none are more novel 
than this — that a great party should complain that the results of a war 
were too advantageous. It will be hard, however, to convince the bulk 
of our people that we are the worse off because our flag has gained great 
honor, our possessions have been extended, our position in the world in- 
creased, and our opportunity for work for usefulness enormously widened 
through the fortunes of war and the valor of our soldiers and sailors. 

Being in this desperate need of arguments, it is not strange that they 
should have recourse to fiction. An attempt is made in the Ohio Demo- 



NO ALLIANCE WITH ENGLAND. 161 

cratlc platform to excite the prejudice of certain classes of voters against 
the present Administration by accusing it of an alliance with England. 
The people who make this charge know it to be untrue; their making it 
is an insult to the intelligence of those whose votes they seek by this 
gross misrepresentation. But as one of their favorite methods of cam- 
paign is to invent a fiction too fantastic for contradiction, and then to as- 
sume it to be true because it has not been contradicted, you may permit 
me to take one moment to dispose of this ghost story, as it refers to the 
department with which I am connected. There is no alliance with Eng- 
land, nor with any power under, heaven, except those known and pub- 
lished to the world— the treaties of ordinary international friendship for 
purposes of business and commerce. No treaty other than these exists; 
none has been suggested on either side; none is in contemplation. It has 
never entered into the mind of the President nor of any member of the 
Government to forsake, under any inducement, the wise precept and ex- 
ample of the fathers which forbade entangling alliances with European 
powers. 

I need not dwell upon this fact. Even the men who wrote the Ohio 
platform know there is no alliance. But they seek to make capital in 
this campaign out of the undeniable fact that our relations with England 
ore more friendly and more satisfactory than they have ever been before. 
It is hard to take such a charge seriously; and if it is taken seriously, 
how can it be treated with patience? In the name of common sense, let 
me ask what is the duty of the Government, if not to cultivate, wherever 
possible, agreeable and profitable relations with other nations? And if 
with other nations, why not with that great kindred power which stands 
among the greatest powers of the world? What harm, what menace to 
other countries, is there in this natural and beneficent friendship? Only 
a narrow and purblind spirit could see in it anything exclusive. It is a 
poor starved heart that has room for only one friend. It Is not with 
England alone that our relations are improved. We are on better terms 
than in the past with all nations. With Russia, our old-time friend; with 
the great German Empire, to which we are bound by so many ties; with 
our sister Republic of France: with Italy. Austria, and in short every 
European, every Asiatic nation, our relations are growing in intimacy 
and cordiality every year; and our friendship with our neighbors to the 
south of us, from the Rio Grande to Cape Horn, grows firmer, more gen- 
uine, day by day. 

And why should It not be so? Everyone likes to be on good terms with 
the peaceful and the prosperous, especially if their prosperity is of that 
nature that other people profit by it, and this is precisely our condition. 
Our trade Is taking the vast development for which we have been pre- 
paring through many years of wise American policy, of sturdy American 
industry, of thoughtful Invention and experiment by trained American in- 
telligence. We have gone far toward solving the problem which has so 
long vexed the economists of the world— of falsing wages and at the same 
time lowering the cost of production— something which no other people 
have ever accomplished in an equal degree. 

We pay the highest wages which are paid in the world; and we sell our 
goods to such an advantage that we are beginning to furnish them to 
every quarter of the globe. We are building locomotives for railways In 
Europe, Asia, and Africa: our bridges can be built in America, ferried 
across the Atlantic, tranffTforted up the Nile, and flung across a river in 
the Soudan In less tim"e than any European nation, with a start of 4,000 
miles, can do the work. We sell Ironware in Birmingham: carpets in 
Kidderminster; we pipe the sewers of Scotch cities; our bicycles distance 
all competition on the Continent; Ohio sends watch cases to' Geneva. All 
this is to the advantage of all parties; there is no sentiment in it; they 
buy our wares because we make them better and at lower cost than other 
people. We are enabled to do this through wise laws and the American 
genius for economy. Our working people prosper because we are all 
working people; our Idle" class Is too meager to count. All the energies 
of the nation are devoted to this mighty task— to insure to labor its ade- 
quate reward and so to cheapen production as to bring the product within 
the reach of the greatest number for least money. 

Of course, our prosperity would not bring us friends if we held an atti- 
tude of menace to other nations. But this we have never done, and I 
hope and believe we never shall do. We have great latent military power; 
we are capable at short notice of remarkable military efficiency ; but the 
habit and spirit of the American people is essentially peaceful." The vast 
majority of our people would be glad to think that the era of wars was 
over; that not another battle anywhere In the world should ever stain 
the earth with carnage or break the heart of a mother. No other nation 
would ever have shown the long-suffering patience with which we 
watched for so many years the scenes of waste and disorder which mark 
the recent history of Cuba. When the state of things at our door had 
become Intolerable, we took up arms to redress wrongs already too long 
endured, without a thought in any mind of conquest or aggression. But 
no one can control the issues of war. Porto Rico and the Philippines are 
ours, and the destinies of Cuba are for the moment intrusted to our care. 
It is not permitted us to shirk the vast responsibilities thus imposed upon 
us without exhibiting a nerveless pusillanimitv which would bring upon 
us not only the scorn of the world, but what is far worse, our own self- 
contempt. But as we did not seek these acquisitions— which came to us 
through the Irresistible logic of war— we are not striving anywhere to 
acquire territory or extend our power by conquest. 'It Is no secret that 
in more than one quarter outlying territory only awaits our acceptance: 
but every overture of this nature has been and, I am confident, will 
be declined. The whole world knows we are not covetous of land; not a 
chancery in Europe sees in us an interested rival in their schemes of ac- 
nuisition. What is ours we shall hold; what is not ours we do not seek. 
But in the field of trade and commerce we shall be the keen competitors 
of the richest and greatest powers, and they need no warning to be as- 
sured that in that struggle we shall bring the sweat to their brows. 

It was written of old that a man's foes shall be of his own household. 
The simple fact is that at this moment the whole world is our friend, 
except certain leaders of the Democratic party. All countries crowd into 



^HE WAR DEPARTMENT. 

oar market?, tlioagh onr opponents say our tariff Is t>arbarous. Our 
achievements in war have received the ungrudging praise o£ foreign na- 
nd meet with unjust and carping or: 7 at home. All other 

countries bid us godspeed in the work of bringing order and civilization 
to the Philippines, and it was left to a man in Cincinnati the other day 
to wish that "Otis and his army might be swept into the s 
hard to exterminate a rooted tendency— the Pr something 

braying in a mortar. The party which by unwise leadership in 1S61 wa? 
made fo pi - the path of freedom and progress should take 

care not to follow the lead this year of men as lacking in - - 
they are in patriotism. But we may take comfort in the reflection that 
no leaders can carry all their party into courses their judgmea; must 
condemn and their hearts reje are. than vay Demo- 

^-ho do not desire the humiliation of their country or the dishonor 
of their flag. Yours, faithfully, 

::n hay. 



TEI WAR DEPAETXEXT. 
Besults Accomplished Incident to Spanish.- American W 

Prior to the outbreak of the Spanish-American war the 
_th of the Eegular Army was 2,143 officers and 26.040 en- 
listed men. Under the President's first and second calls, April 
23 and May 25, respectively, and the recruitment of the Regular 
Army :: :mum allowed by rengrh of the 

Army. Regular and Volunteer, in Au_ :. was 11,1 

and 263,609 enlisted mem 

In the ni nount of work, which words fail to 

performed by the vari : departments, after 

day and night conferences with the chiefs thereof, in organiz- 
ing 1 , equif s ?iplining. and advancing the volun- 
i efficiency for active field and later 
transport!] s > the camps or rendez- 
vous to which they had been assigned. 

Cuba. 

On M . instructions were issued by the Department 

ing an expedition, under command of Maj. Gen. Wm. K. 

Shafter, to pi "capture the garrison at Santiago 

and assist in capturing; the harbor and fleet of the enemy." 

This expedition sailed on June 14, 1.S9S. from Tampa. Fla.. 

transports, which had 
been collected with extraordinary dispatch and energy I 
Quart ermasrer's Department, and arrived at. Daiquiri on June 
21 and proceeded * sei .-ark the next he troops im- 

mediately advanced and captured Siboney. the onlV resistance 
being s 5, thus establishing a base of sup- 

plies go. 

On the morning of J» lismounfed eavali 

advanced on and attacked the enemy at La Guasima, and, after 
a stubborn resistence. carried their intrenchim 

On July 1 an attack was made on Y andj after a battle 

of varying intensity during most of the day, the place was car- 
ried Lt about 4 p. m. In the meantime preparations for 
an attack on San Juan Hill were completed, and. after a fierce 
encounter, the American forces drove the enemy from his in- 
trenchments and block' bus gaining a position that sealed 
the fate go. 

On July B xhe commander of the Spanish forces offered to 
march out of the city >f Santiago *-vith arms and baggage pro- 
vided he would not be molested before reaching Hoi gum, and 
to surrender i erican forces the territory then occupied 

-21. This proposition was rejected. On the morning of July 
11 the surrender of the city was again demanded and reply 
made that the demand had been communicated to the general 
in chief of the Spanish forces. On the morning of the 14th 
General Torai agreed to surrender upon the basis of his army, 
the Four- Corps, being returned to Spain. The terms 

of surrender finally agreed upon included 22,7S Spanish troops: 
of th : were repatriated at the expense of the United 

States. 

The formal surrender took place on the 17th of July, 1898. and 
at noon of that date the American flag was raised over the 
governor's palace with appropriate ceremoni. - 



WORK i>F THE WAR DEPARTMENT. %p 

Porto Rico. 

-ailed for Porto Rico, Maj. 
Gen. kelson A. Miles. Comm eneral United Army, 

in command, with Mcers and enlisted men. for the 

pose of attacking- that island, which was garrisoned 
Spanish soldiers, regular and volunt i 

America: 
was raised at that place. S ' five other expe I 

16,332 
enlisted I - rmy, reg 

j 
juga* rions 

The total number or S 

:i by September. 1608, rolls 
ed 'men, classed as : Regulai 

sted men: volunte- -; ir- 

regular volunteer troo :uen. 

On led for : n of 

the troops in General Shatter's command, and ad al in 

the Unit' they went into camp at -int. Long 

Island, X. Y.. which/ in the meantime, had been fitted up tor 
their reception. 

On July 7. 1S08, Coi e ided and confirmed the cession 

of the Hawaiian Islands, made by the government of tha 
public, and on Jui force of " irs and 1,464 en- 

Thos. York 

Volunteer Infantry, sailed for Honolulu to trarrison that place. 

The first expeditionary force sailed for Manila, P. I., on May 
25 and arrived June June 1" and 

arrived July 17, and the third left on Jnne 29 and arrived Jury 
The total number of officers and men ii ree expe- 

. and they were under the command of Maj. 
Gen. captured, with the 

assistance of - and the American Mag 

raised the same date. Subsequently, between this date and 
Februarv 17 other ns were - the Philip- 

pine Islands, making a total of 1,054 officers I enlisted 

men on those islands in March. 1S99. This force, com; 

inteers. lias since been repatri 1 Regular 

Army organizations s volunt 

of :'". the force at present in the Philippi 

Food Distribution. 

«nd April 2. I a food 

which w ; 'on>> 

' Deparn 
and an additional rilmted to Them from the 

subsistence depot on that island. Hundri - * - have also 

been contributed by the -eneral pnblic and distributed under the 
supervision of the military authoriti - ind. 

Th^ he peace protocol, A air - lugurated 

the work harge of about war of the 

lar Army and the muster-out and distribution throughout 
the country of State volunteer organizations, involving th 
patriation. exclusive of regular troops, of 1 - .1 en- 

listed men from Porto B . Philippine Isl id Hawaii, 

causing the recruitment, mobilization, and movement to those 
islands of fresh regular troops and the _ of 25 regi- 

ments of United States volunteers and the I ." t "alion, 

all under 
In Cub:- 
police (rural _ that of 

a new basis: it h s 

of modern sanitation has secured a mos 

in the mortality. The customs and insular taxation - stem have 
been placed upon such a basis that the is :nly self- 

supporting, but is enabled to make i«nt ini proven- 

Much progress has recently beer. a modern 

school . while the Unite 1 {States pc ;per- 

seded the former inefficient ser- 
in Porto Eico boards of health have been \ in mu- 
nicipalities and sanitation has made grea: r building' 



164 WORK OF THE WAR DEI'ARTMENT. 

of good roads lias been conducted on an extensive scale. The 
schools have been reorganized, modern methods and text-books 
being introduced. The burdens of taxation upon the people 
have been greatly reduced, while the efficiency of the govern- 
mental service has been greatly augmented. An up-to-date pos- 
tal service is now enjoyed by the people, while the judiciary 
and police systems are in much more satisfactory condition than 
formerly. 

New Conditions in the Philippines. 

In the Philippines, in addition to the former ports cf Manila, 
Iloilo, Cebu, and Zamboango, there are now open to the com- 
e of the world twenty-five other ports. Initial steps have 
been taken, under Army officers, for the civil reorganization of 
municipalities. The United States postal service has closely fol- 
lowed the troops. Public schools are being opened, in which 
the most apj>roved American text-books are in use. 

The Signal Corps has performed its work with unequaled 
promptness, ability, and success. The telephone, telegraph, and 
rlag have kept the President in touch, through commanding gen- 
erals, not only with every Army corps and their advanced skir- 
mish! lines, but with eo-ox>erating squadrons of the Navy. 

In constructive work the corps has built nearly seven thou- 
sand miles of telegraph, and is to-day oj:>eratmg these lines in 
Cuba. Porto Pico, and the Philippines with an efficiency and 
economy hitherto unknown in those countries. 

Coast Defense. 

Immediately preceding the outbreak of the war with Spain 

there were available for the defense of the seacoast 63 heavy 

guns and SS niortars. The work was pushed rapidly by the 

neer Department, with the result that by August 1. 1S9S. 

there were mounted for defense a total of 121 heavy guns, 144 

mortars, and 26 rapid-fire guns. In addition, 25 of the principal 

harbors of the United States had been effectively defended by 

submarine mines. On June 30. 1899, there had been mounted 

ravy guns. 175 mortars and 46 rapid-fire guns, and a large 

number of additional batteries were under construction, and 

the principal harbors of the United States rendered fairly secure 

st a naval attack. 

Notwithstanding the additional exacting duties necessitated by 
this war. the numerous river and harbor improvements and other 
public engineering works in the charge of the Corps of Engi- 
neers, representing an annual expenditure of over $25,000,000, 
were administered without the slightest interruption or sacrifice 
of the public interests. 

The Medical Department. 

The sudden expansion of the Army imposed a most difficult 
task upon the Medical Department — a task which was worked 
out with the greatest success and the highest credit. War in- 
evitably entails disease, suffering, and death, but, it can be safely 
said, in no war have the sick and wounded received so many 
comforts and been so tenderly nursed. 

The health of our troops serving in the newly acquired terri- 
tory has been guarded by every provision that modern science 
can provide, and the sickness and mortality from disease has 
been kept far below what was to be expected. The ratio of 
deaths per thousand of mean strength for the first year of the 
war was but 25.73, while that for the first year of the war of 
1561-05 wa 

It is a fact well worthy of consideration to state that the 
Quartermaster-General's Office, which at the outbreak of the 
war did not have a transport that was fitted for the transpor- 
tation of troops, has to-day the finest transport service in the 
world, and has transported about 300,000 passengers many thou- 
sands of : sea without the sacrifice of a single life due 
to any fault of the Army transport service. 

This service is a revelation in the method of transporting 
troops, and the representatives of other nations have requested 
and been furnished data upon which to pattern after it. 



WORK OP THE WAR DEPARTMENT. 165 



The Ordnance Department. 

The Ordnance Department armed and equipped the troops for 
the Spanish war with a rapidity which must be regarded as 
gratifying. The arms and equipments were ready as soon as the 
troops could be mustered in and organized, and the material 
distributed. The productive capacity of the arsenals was quickly 
expanded and contracts were made with private manufacturers, 
so that in one hundred days after the first call for troops, the 
Ordnance Department had made or purchased 250,000 sets of 
infantry equipments and 26,000 sets of horse equipments. It 
had also provided the cannon and complete outfit of 30 mounted 
batteries of 6 guns each, and could easily have provided twice 
that number if they had been required. It had also provided, 
or was in a position to furnish at once, a large variety of 
mountain guns and machine guns, with their ammunition and 
equipments, but not many of these were called for. 

The work of the Pay Department, from the commencement 
of the Spanish-American war to its close and during the con- 
tinuance of hostilities in the Philippines in suppression of in- 
surrection, has been phenomenally laborious and exacting, but 
the officers of this department have met every requirement of 
duty with zeal and promptitude and to the satisfaction of the 
Army. 

For the fiscal year ending June 30, 1899, this department of 
the military service has been charged with the care of nearly 
$92,000,000, about $77,000,000 of which was, up to June 30, 1899, 
disbursed on account of the war without loss to the Government 
on any account whatever and without complaint of any char- 
acter from the Army. 

When war with Spain became imminent great efforts by the 
Military Information Division of the Adjutant-General's Office 
were made to ascertain the strength, the composition, the loca- 
tion, and fortifications of the Spanish forces in Cuba. This was 
successfully done. Maps of Cuba and Porto Rico on a large scale 
were prepared, and books were compiled giving all obtainable 
information in regard to these islands. 

Later, when it became evident that military operations in the 
Philippines would be carried on, a pamphlet (illustrated) giving 
information in regard to those islands was prepared, and maps 
compiled from the best sources obtainable were prepared and 
issued. 

There have been mustered in, organized, mobilized, distributed 
at home and abroad, and finally repatriated and mustered out 
of the service, and sent to their homes, 223,235 volunteers. There 
have been enlisted by the general recruiting service 35,000 United 
States volunteers, organized into 25 regiments, 22 of which have 
been transported to the Philippine Islands, the remaining 3 hav- 
ing been organized there from the discharged volunteers and 
regulars. 

There have been enlisted and re-enlisted for the Eegular Army 
between May 1, 1898, and January 31, 1900, 99,024 men, the 
present status being approximately 64,000 Regular Army and 
35,000 United States volunteers. 

Commissions have been issued since the beginning of the war 
to 632 officers of the Regular Army, 66 of which were for the 
various staff departments, and 3,874 United States volunteer 
officers. 

This Department has received, carefully considered, acted upon, 
and sent since the beginning of the war 400,806 telegrams, and 
approximately 2,000,000 written communications. 



WORK OF THE NAVY DEPARTMENT. 
Results Accomplished Incident to Spanish-American War. 

Under the present Administration the Navy has shown itself 
worthy of its best traditions. The great victories at Manila Bay 
una Santiago, which shed undying fame upon this arm of the 
national defense, were in no sense accidents. They were the 
results of years of careful training of officers and men and the 
thorough preparation of the fleets for the crucial test of war. For 



1GG WORK OF THE NAVY DEPARTMENT. 

this preparation, this readiness to meet the supreme moment for 
which a navy is constructed and maintained, those who admin- 
ister the affairs of the Navy should have credit. The glory goes 
to our heroes who are in command afloat, and to those officers 
and men who seize the opportunities of war to render conspicu- 
ous service; but in remembering them, let us not forget those 
who labor without ceasing to secure the fleet in condition of high 
efficiency and to place at the disposal off the commanding- officers 
an abundance of the supplies, without which the fleet is power- 
less. 

As early as January 11, 189s, more than a month before the 
Maine was destroyed in the harbor of Havana, the Secretary of 
the Navy began to mobilize the ships of the Navy and to take 
such measures as would place at the disposal of the officers in 
command the full measure of our naval force. 

Immediately upon the passage of the bill appropriating $50,- 
000,000 for the national defense, a board was organized for the 
purchase of auxiliary ships, and after careful examination 102 
ships of various types were secured at a total cost of $17,956,S.50. 
Of these vessels but two, the Xcw Orleans and the Albany, were 
strictly vessels of war. The others were merchant ships, pleas- 
ure yachts, tug's, etc., which were rapidly overhauled at the dif- 
ferent navy-yards, provided with such light-armor protection as 
was practical, and suitably armed. 

Quick Preparations for War. 

Between March 16 and June 30 all these vessels were purchased 
and as rapidly as overhauled were placed in commission and put 
into active service. They were used not only as auxiliary war 
vessels, but to supply the fleets with coal and ammunition and 
with fresh water and fresh provisions. For the care of the sick 
and wounded the Solace was fitted out as a complete hospital, and 
to make repairs to vessels at sea the Tnlcan was fitted out as a 
modern machine shop. In order to meet the increased demands 
on the navy-yards it was necessary to practically double the force 
between February 15 and the middle of April. 

In addition to the ships which were added to the Navy by pur- 
chase, 15 revenue cutters and 4 light-house tenders were trans- 
ferred from the Treasury Department to the Navy, and 4 of the 
great steamers of the International Navigation Company were 
chartered. There were in all 12S ships added to the regular naval 
establishment, and it becaine at once necessary to provide officers 
and men to man them. For this purpose 225 officers on the re- 
tired list were ordered to active duty, 856 officers were appointed 
for temporary service, and the enlisted force was increased from 
12,500 to over 24,000 men. 

It was an enormous undertaking to make all these additional 
ships ready for war service, tit secure the necessary guns for 
them, and to keep the fleets supplied with coal, ammunition, and 
provisions. But this was only a part of the work which the Navy 
Department had in hand. For the protect ton of the coasts of the 
United States an auxiliary naval force was created, which was 
officered and manned by the Naval _M i 1 i t i a of the United States. 
A coast signal service was established, which kept practically our 
entire coast line from Maine to Texas under observation, to give 
warning of the approach of an enemy's vessel or of suspicious 
craft of any kind. 

The operations of the fleets of the Asiatic and North Atla.ntic 
squadrons are so well known that it is hardly necessary to speak 
of them in any detail. Their work was so well done that the 
power of Spain was swept from the sea, and Cuba, Porto Rico, 
and the Philippines, which she had misgoverned for centuries, 
were taken from under her dominion. 

Increase of Naval Strength. 

But the claims of the administration of the Navy to the ap- 
proval of the people rest not alone on its war record. The up- 
building of the new Navy has g-one steadily forward., and Con- 
gress has co-operated with the Department in the desire to ma- 
terially increase our naval strength. 



WORK OF THE NAVY DEPARTMENT. 167 

Since the 4th of March, 1897, Congress has authorized the con- 
struction of 49 ships, with a total displacement of 155,484 tons. 
This includes 6 battle ships of the first class, 3 armored cruisers 
of the first class, 4 monitors, and 6 protected cruisers. The 
naval bill as it passed the House added to this formidable list of 
battle ships of the first class, 3 armored cruisers of the first 
class, and 3 protected cruisers, with a total displacement of 90,000 
tons.. There hare been completed and placed in commission in 
the same time a total of 32 vessels, with an aggregate displace- 
ment of 52,681 tons. It is an unexampled record. 

A strong Navy not only adds to our prestige abroad, but makes 
the rights of our country respected wherever they may exist. 
The money expended does its part in lending a stimulus in many 
branches of trade and manufacture and in the employment of 
labor. 

It is difficult to form an intelligent idea of the number of peo- 
ple who are furnished employment by the creation and main- 
tenance of our Navy. One would have to examine the rolls of the 
great private establishments which make the. steel and build the 
ships, and furnish ammunition and supplies. But some idea of 
the importance of the navy-yards to the laborers of the country 
ean be formed from the fact that in 1893 over 21,000 men were 
certified for employment by the labor boards at the various navy- 
yards. This number, however, is in excess of the number usually 
employed, as 1898 was the year of the war with Spain. In 1899, 
on the other hand, over 12,000 men were certified by the boards 
of labor at the various yards. 

The Personnel Bill. 

To this administration must also go the credit for the reor- 
ganisation of thv personnel of the Xavy. For years the effort 
had been made to secure legislation to increase the flow of pro- 
motion of oflieers pf the line, so that they might reaeh command 
rank at a suitable age. But the efforts had borne no fruit until 
the present Administration took the matter in hand. They sue- 
eeeded in drawing a bill consolidating the line and the Engineer 
Corps. This bill met wttn the approval of the service and of Con- 
gress, and became a law on the 3d of March, 1809, 

This bill also provided for an increase of over 50 per cent in 
the number of officers and enlisted men in the Marine Corps, and 
brought this branch of the service up to a total strength of 211 
officers and 6,000 men. The enlisted force of the Navy has also 
been largely increased during the past three years, the quota 
now allowed by law being 17,500 men and 2,500 apprentices. 

Docks and Coaling Stations. 

It has been the desire of the Administration that the Navy 
should grow, not alone in the number of ships, but in all its 
branches. Probably the most pressing need of the service when 
Mr. Long took charge of the Department was for additional dock- 
ing facilities, and Cong-ress, in response to his recommendations, 
authorized the construction of four stone and concrete docks and 
one steel floating dock capable of docking vessels of the largest 
size. Coaling' stations equipped with modern appliances for the 
economical and rapid handling of coal have been established or 
are in process of establishment at Portsmouth, N. II.; Boston, 
Mass.; New London, Conn.; New York. N. Y.; League Island. 
Pa.; Port Boyal, S. C; Pensaeola, Fla.; Dry Tortugas, Fla.; and 
in San Francisco Bay. 

Suitable coaling stations are also in process of erection at 
Honolulu, If. I.; Pago Pago, Samoan Islands; the island of Guam; 
ai Manila, in the Philippines, and at the naval station, San Juan, 
Porto Pico. These coaling- stations in our new possessions, espe- 
cially in the Pacific, furnish greatly increased facilities to our 
naval vessels, and, in the event of war, would prove of inestim- 
able advantage. It has, indeed, been the aim of the Administra- 
tion to extend our naval power in every direction. The upbuild- 
ing of the navy-yard plants has been pursued with great vigor, 
rind the Department has had the hearty cooperation of Congress 
in this work. The electric plants have been materially increased 



168 WORK OF THE TREASURY DEPARTMENT. 

and modern machinery has been installed wherever the needs 
of the service demanded. 

It is, of course, impossible to enter into the detailed work 
which has been done in this connection; but it is not too much 
to say that the efforts of the Administration will result in put- 
ting- our navy-yards in a condition to meet every demand which 
may be made upon them. They are capable of making the most 
extensive repairs to ships of all classes, and with the increased 
docking facilities which are in process of construction, this 
branch of the naval establishment will be brought to a point of 
efficiency where it is in keeping with the fleet in being, and with 
such increase as may be made in the near future. 

The value of the coaling and repair stations established under 
Secretary Long, especially at outlying points in the Pacific, must 
constantly increase as commerce with our new possessions 
grows. 

At the beginning of the war with Spain Honolulu was the only 
port out of the United States in which Ave possessed coaling fa- 
cilities. When we recall the great distances in the Pacific, and 
the fact that under the rules of international law a belligerent 
ship is permitted to take on board in a neutral port only suffi- 
cient coal to enable her to reach her nearest home port, we begin 
to realize the importance of these provisions for furnishing sup- 
plies and making the necessary repairs to our ships of war. 



THE TREASURY DEPARTMENT. 

Its Great Achievements Relative to War Loans, the New Cur- 
rency System, the Funding of the National Debt — Settlement 
of the Pacific Railroad Indebtedness. 

Four achievements in the management of the public finances 
and revenues under the Administration of President McKinle}- 
stand out with marked prominence: 

First, in point of success, is the Dingley tariff; second, the 
reform in the currency and refunding of the national debt; third, 
the war loan of 1898; and fourth, the settlement of the Pacific 
Railroad indebtedness. 

Perhaps never before in the history of this country have so 
many important fiscal achievements been accomplished in so 
brief time. With the exception of the Pacific Railroad settle- 
ment, these events bear, to a considerable degree, relationship 
to each other. Underlying the success of the war loan of 1898 
and the reform in the currency was the basis of prosperity es- 
tablished by prompt and effective tariff legislation. The Presi- 
dent well understood the necessity for speedy modification in the 
tariff. Within forty-eight hours after his inauguration he issued 
a proclamation for an extra session of Congress to assemble 
March 15, 1S97. The brief message sent to Congress when it con- 
vened on that day clearly demonstrated the urgent necessity for 
prompt action. Said the President: 

Congress should promptly correct the existing condition. Ample rev- 
enues must be supplied not only for the ordinary expenses of the Govern- 
ment, but for the prompt payment of liberal pensions and the liquidation 
of the principal and interest of the public debt. In raising revenue, 
duties should be so levied upon foreign products as to preserve the home 
market, so far as possible, to our own producers; to revive and increase 
manufactures; to relieve and encourage agriculture; to increase our do- 
mestic and foreign commerce; to aid and develop mining and building; 
and to render to labor in every field of useful occupation the liberal wages 
and adequate rewards to which skill and industry are justly entitled. 
The necessity of the passage of a tariff law which shall provide ample 
revenue need not be further urged. The imperative demand of the hour 
is the prompt enactment of such a measure, and to this object I earnestly 
recommend that Congress shall make every endeavor. Before other busi- 
ness is transacted let us first provide sufficient revemie to faithfully ad- 
minister the Government without the contracting of future debt or the 
continued disturbance of our finances. 

The House of Representatives promptly responded to the Presi- 
dent's message. On the same day in which it was read in the 
House, the late Mr. Dingley, of Maine, chairman of the Com- 
mittee on Ways and Means, introduced the new tariff bill. Such 



THE DINGLEY TARIFF LAW. 160 

unusual expedition had been made possible only by the untiring 
work of the members of the Committee on Ways and Means for 
several months previous. 

The Dingley Act. 

The bill was passed in the House of Eepresentatives March 31, 
1897, less than a month after the inauguration of President Mc- 
Kinley and two weeks after Congress had convened in extra ses- 
sion. It passed the Senate July 7, 1897, with amendments. Two 
days later its consideration was begun by a conference commit- 
tee of the two Houses, and it finally passed the House July 19 
and the Senate July 24. It became a law on the latter day when 
the President signed the bill. Thus, within five months (no other 
tariff law was ever passed in so short a time) after the inaugura- 
tion of the President a new tariff law was placed on the statute 
books. Under its beneficent influences the United States has en- 
joyed a commercial and industrial revivial the greatest in its his- 
tory. The hopes of the President as expressed in his messag-e 
have been realized; ample revenues were provided for the ordi- 
nary expenses of the government, and in providing them duties 
were levied upon foreign products so as to preserve the home 
markets; manufactures have revived and increased; agriculture 
has been relieved and encouraged; domestic and foreign com- 
merce have been increased; mining and building have been aided 
and developed, and more liberal wages have been paid to labor. 

Under the operation of the Wilson Act, from September 1, 1894, 
to July 24, 1897, a period of thirty-five months, there was a total 
deficit of $105,180,701. This deplorable state of the revenues was 
largely responsible for that lack of confidence which prolonged 
the hard times inaugurated by the panic of 1893. 

The Dingley tariff became a law July 24, 1897. Under its opera- 
tion ample revenues have been provided, as urged by President 
McKinley. During the period of thirty-five months the law has 
been in force, July 24, 1897, to June 30, 1900, the receipts of the 
Government from all sources, exclusive of Pacific Railroad items, 
were $1,368,534,088. Deducting- from these receipts the Treasury 
Department's estimate of collections under the War lievenue Act, 
amounting to $219,500,000, there were net receipts of $1,149,- 
034,088. The expenditures for the same period ag-gregated $1,366,- 
663,406, and deducting- the Treasury Department's estimate of 
war expenditures of $395,000,000, the net expenditures for the 
period stand at $1,091,099,026, leaving- for the thirty-two months' 
operation of the Dingley tariff an excess of net receipts over net 
expenditures of $57,935,062. 

It is proper to compare this surplus under the Dingley law 
with the deficit of $105,180,701, which was shown at the end of 
thirty-five months' operation of the Wilson Act. (See page 197.) 
"In raising revenue," said the President in his message, "duties 
should be so levied upon foreign products as to preserve the home 
market, so far as possible, to our own producers." That the 
home market has been preserved to our x^roducers is shown by 
the great reduction in the importation of manufactured articles. 
In the fiscal year 1896 the imports for consumption of manufac- 
tured articles of all classes were $328,937,228, and in the fiscal 
year 1897, all of which elapsed prior to the enactment of the 
Dingley law, they were $327,324,920. In the fiscal years 1898 and 
1899 they averaged about $265,000,000 per year, being in 1898, 
$273,467,249, and in 1899, $259,801,751. Thus 'in manufactured ar- 
ticles the reduction in importations immediately following- the 
enactment of the Dingley law has averaged $75,000,000 per an- 
num, while the amounts consumed by the home market have 
greatly increased, as is shown by the great increase in the impor- 
tation of raw material for use of manufacturers, stated in the 
paragraph which now follows: 

The President urged that the new duties be so levied as "to 
revive and increase manufactures." In the fiscal year 1897 the 
imports for consumption of articles in a crude condition which 
enter into the various processes of domestic industry amounted 
to $207,268,155, and in the years 1895 and 1896 averaged 
less than $200,000,000 annually; in the fiscal year 1900 the im- 
ports of this class amounted to $302,264,106, an increase of 



170 PRESIDENT'S PLEDGES REDEEMED. 

nearly $100,000,000 over the average for the three years of low 
tariff, in which many of these articles, notably wool) were upon 
the free list. At present the importation of manufacturers' 
materials is running- at the rate of $28,000,000 per month, or 
more than 50 per cent hig\her than the monthly averag-e in the 
year prior to the enactment of the Dingley law and to the 
recommendation above quoted. 

Agriculture Aided. 

The President also urged that the new duties should be so lev- 
ied as "to relieve and encourage agriculture." That agriculture 
Lis been relieved and encouraged is shown by the increased 
pives for agricultural products, all of which have materially ad- 
vanced in the home market, and by the large increase in exporta- 
tion O-l the products of agriculture, which in the fiscal year 1900 
were $1 0,000,000 greater than in the fiscal year 1897. 

The m. ssage also recommended that the new duties should be 
so levied as "to aid and develop mining." That mining has been 
greatly encouraged is amply shown hj the figures relating- to the 
two great mining industries, coal and iron. The coal production 
of 1899 exceeds 200,000,000 tons, against 179,000,000 in 1897 and 
171,000,000 in 1896, and has placed the United States at the head 
of the world's producers of this article, our product in 1899 being 
greater than that of any other country of the world. The pig- 
iron production in 1899 was 13,020,703 tons, against 9,652,680 tons 
in 1897 and 8,623,127 tons in 1S90. In pig-iron, as in coal, the 
United States now holds the first place in the world's production. 

Labor Protected. 

And, finally, the President urged that in raising revenue duties 
should be so levied as "to render to labor in every field of useful 
occupation the liberal wages and adequate rewards to which skill 
and industry are justly entitled." That the wag v es of labor have 
been greatly increased in every line of industry is evidenced by 
the frequent reports of increased wag*es published from time to 
time. In an address before the Trades League of Philadelphia, 
January 25, 1S98, Hon. Lyman J. Gage, Secretary of the Treasury, 
reviewed in general the increase in wages which had taken place 
under the administration of President McKinley, as follows: 

Only a few weeks ago worsted manufacturers in Rhode Island restored 
the wage scale of 1803 in their mills, thus granting an increase of 20 per 
cent In the pay of about 25.000 operatives. * * * In the city of Phila- 
delphia numerous woolen mills have restored the wages of 1893, and are 
so active that it is difficult and sometimes impossible to secure the help 
required to operate them; and woolen manufactures are booming all over 
the country. * * * Within a few weeks after the November election of 
1896, 15,000 men, idle for a long time, were put to work iu the window- 
glass industry. Since then, as the revival has progressed, Instances of ad- 
vances in wage rates and of increases in numbers employed have multi- 
plied. The resumption of work in rolling mills during the summer in 
Alabama, Maryland, and Ohio gave employment to thousands of men. 
Indeed, in iron and steel and the industries directly dependent upon the 
consumption of iron as material I have it upon authority that there is an 
increase of at least 267.000 men employed over the preceding year. In 
addition to this large increase iu thf working forces employed in iron and 
steel and dependent branches, advances in wagi-s ranging from 10 to 20 
per cent have been made, and in some cases much greater, as the result 
of wages paid on a tonnage basis. 

Since the passage of the tariff bill th^ tin-plate industry has wonderfully 
revived, and wages in this line have since the summer been increased by 
rates varying from 8 to 12 per cent. The weekly output of coke at the 
end of 1897 was more than double what it was at the close of 1896, and in 
the Connellsville coke works there has been an increase in the number 
actually engaged from 10 to 20 per cent. The voluntary advance in wages 
by the leading companies in the coke industry has benefited thousands of 
men. The advance in wages of glass workers, determined upon at the 
close of the year, is so recent that Mr. Bryan must know of it. The 
pottery industry of Trenton during recent years has been greatly de- 
pressed, with many failures, and not half the hands have been employed 
until recently. Wages haA r e now been advanced more than 12 per cent, 
and there is a great increase in the number employed in this district, to 
the extent at this time of probably 5.000 or more. It was made public so 
recently as last September by an official report of the New York trades 
union that there was then an increase of 34 per cent in the number of 
their men employed, compared with the previous year. 

Near the close of November last the wage scale of the Missouri Pacific 
in its shops at Fort Scott was restored to what it was before the reduc- 
tion of 1893. I have an accurate list of more than 250 mills, factories, and 
enterprises that have during the last six months resumed work, many of 
them having been Idle since 1896, when the depression became more 



THE NEW CURRENCY LAW. 171 

acute as the result of the agitatien for the free and unlimited coinage 
of silver at the ratio of 16 to 1, "without the aid or consent of any other 
nation." Most of them have advanced wages over the old scale. All of 
them are running full time, most of them double time, and in many the 
tires nre now mvor drawn nor the wheels stopped, three shifts being re- 
quired to meet the htavy demands. This all indicates a great increase in 
working forces. 

Some recent reports, selected at random, covering- various 

us of the country, show that the movement toward higher 

3 has continued. The report of the Michigan Bureau 

and Iacfustrial Statisl -rates that a canvass of the 

factories in that State show:- that ictories the li'in- 

t employees was ... . greater than in the year 
the average increase in these factories being- IT. 6 per cent, 
while the wages paid were found to be higher than in 
and greatly in 1 and 1896. A canvass 

of several hundred shops and factories in the State of Ohio shows 
the number of hands employed in 1899 te be 69 per cent in excess 
of the number in 1896 and the total monthly pay roll SO per cent 
greater than in 1S96, the e; kers in the shops 

and factories in ti E Ohio b 

per month in excess of those received in 1 

anntaal r< the Bureau of Labor S- 

tics (ISO'.)) of Missouri show that "the total amount of v 
paid duri] 7, an increase over 

lust year 

The thirteenth annual report of the Bureau of Labor and In- 
dustrial Statistics in average annual 
earnings of emplo 'aeturing cotton good's 
there was froi; a decreas ad duriiiL 
p;ivst year 



The New Currency law. 

The reform in the currency la great achieve- 

ment in the administration of public sident 

McKinley. The act approved by th at March 14. 1900, 

s the United S 88 th> 

Repubkatn paritf continue* mVowfi •»'<) affairs. Confidence 

in respect to the money standard is now at the highest, and the 
integrity of all our various forms of money has been declared by 
law. The uncertainties and misgivings of more than t\\ 
years have been dispelled, ami a broad foandati. 
and security laid, upon whieb may be reared the struct!; 
enduring prosperity. 

The task has been a difficult one. It m;i- a problem v.hi.-h 
required patience and courage in its solution. The fad that 
three years elapsed before the measure became a law reveals the 
difficult road over which the wo the reform movement 

passed. At the beginning- o 

under the Administration of President MeKinJey the - 
of the Treasury submitted a plan the essential features of \ 
are to be found in the act of March 14. 1900. 

From December, 1S9T, until the bill became a law no op; 
nity was lost to advance the cause of currency reform, 
withstanding an adverse majority' in the Senate the Comr 
on Hanking and Currency in the House considered several ;. 
ures. The work thus -lone in committee, while resulting in norh- 
ing dehnite, was yet of great value, for the long and trying dis- 
n served to bring about a better understanding- of the in- 
tricate questions to be settled. In anticipation of a Republican 
Senate and House in the Fifty-sixth Congress caucus committees 
were organized for the purpose of preparing-, during the summer 
months o: ich a bill as would receive the support of the 

sound-money majority in both Houses. When the first session of 
the Fifty-s : x:h Cot is convened the first hill introduced 

that agreed upon by the House caucus committee. It took 
its place upon the calendar as Hone hill No 1. With all reason- 
able expedition the measure was then considered by both 
branches of the National Legislature, and so became a law March 
14, 19U0. 



172 WORK OF THE TREASURY DEPARTMENT. 



Gold Reserve Increased. 

This currency law does something more than remove all doubt 
concerning the standard of value. It directs that all forms of 
money issued or coined by the United States shall be maintained 
at a parity of value with this standard, and it is made the duty 
of the Secretary of the Treasury to maintain such parity. A re- 
serve fund of $150,000,000 in gold coin and bullion is set apart in 
the Treasury for the redemption of United States notes and 
Treasury notes of 1890, instead of $100,000,000, formerly recog- 
nized as the gold reserve. Such fund is required to be used for 
redemption purposes only. Ample provision is made for restor- 
ing the reserve fund in case it should fall below the $150,000,000 
required to be maintained. 

The act also contains provisions which give greater liberty to 
the organization of national banks. Under the old law no nation- 
al bank could be organized with a capital less than $50,000. Un- 
der the new law the minimum capital required for organization 
is $25,000 in places the population of which does not exceed 3,000 
inhabitants. The object of this provision is to extend better 
banking facilities to those smaller communities heretofore denied 
the privilege of organizing national banks. At the same time, 
the law contains a provision authorizing the banks to issue their 
circulating notes to the par of the United States bonds depos- 
ited as security, instead of only 90 per cent, as formerly. This 
illiberal requirement either resulted in meager profits to national 
banks issuing circulating notes, or, as was the case in some lo- 
alities, in actual losses, the effect of which was to restrict the 
issuing of eirculating notes. Such restriction was most severely 
felt in those communities where currency wants were greatest. 
Under the operation of the new law, from March 14 to April 30, 
214 applications to organize national banks were approved 
by the Comptroller of the Currency. The aggregate capital of 
these banks is $10,380,000. The total of national bank note cir- 
culation has been increased by the sum cf $29,692,368. 

Refunding the Debt. 

Perhai^s the most notable feature of the new currency law is 
that which relates to the refunding of the national debt. The 5 
percents of 1904, the 4 percents of 1907, and the 3 percents of 
1908, the principal of which aggregates $839,146,400, are authorized 
to be refunded into 2 per cent bonds, payable at the pleasure of 
the United States after thirty years from the date of their issue, 
and payable, principal and interest, in gold coin of the present 
standard value. The act contains a provision that the new 2 
per cent bonds to be issued in exchange for the old threes, fours 
and fives shall not be issued at less than par. The Secretary of 
the Treasury was authorized to conduct the refunding operations 
so that the old threes, fours and fives should be received in ex- 
change for the 2 percents on a basis of 2*4 per cent. May 1, 
1900, almost one-third of the outstanding 1 threes, fours and fives 
had been converted into 2 percents of the new issue, thus practi- 
cally securing the success of the refunding plan. No other nation 
of the earth can boast of such an achievement as is the exchange 
of these old, high-rate interest bonds for bonds issued upon so 
low a basis as 2 per cent. Hitherto Great Britain has been re- 
garded as the financial Gibraltar of the world, but while British 
consols bearing interest at the rate of 2% per cent per annum 
were selling 2 points below par, the United States was able to 
float a 2 per cent bond at par with ease. Such facts speak vol- 
umes for the present financial strength of the United States. To 
float a 2 per cent bond at par of this kind means that the integ- 
rity of the dollar has been recognized in the law of the land, and 
there is faith in the honesty of our intentions and purposes for 
the future. 

But faith in the public credit not alone supports the success 
of the refunding operations; that success is supplemented by the 
present national banking- system, and without which it is doubt- 
ful if a 2 per cent bond could ever have been floated in this coun- 
try. National banks are required to deposit bonds of the United 
States as security for circulating notes. Such bonds constitute 



WORK OF THE TREASURY DEPARTMENT. 



173 



an essential element of the national banking- system. The com- 
petition which results from the necessities of the banks in this 
respect is, perhaps, the most potent reason why the United States 
can dispose of its bonds bearing- so low a rate of interest. 

The operations of the refunding provisions of the law from 
March 14 to May 1, 1900, are set forth in the following- table : 





Amount re- 
funded. 


Saving in 
interest. 


Premium 
paid. 


Net saving. 


Threes of 1908 


$60,989,200 
158,791,700 
40,239,850 


85.080,415 

22,998,969 

4,619,841 


$3,465,587 
18,522.306 
4,046.878 


§1.614,828 

4.476.663 

572,963 


Fours of 1907 


Fives of 1904 




Total 


6260,020,750 


832,690.225 


826,034,771 


$6,664,454 





The "net saving-" shown above represents the difference be- 
tween the amount of interest the Government will pay upon the 
bonds refunded to the date of their respective maturities and the 
amount of interest the Government would have been oblig-ed to 
pay had not the bonds above described been thus refunded. 

It has been estimated that, should the total amount of bonds 
subject to the refunding- provisions of the law be offered in ex- 
change for the new 2 percents, the net savings of the Government 
will be in the neighborhood of $22,000,000. As noted, the net 
saving in refunding $260,020,750 to May 1, 1900, was $6,664,454. 



Finances of the Spanish-American War. 

The war with Spain served to demonstrate something more 
than the military and naval strength of the United States: it 
brought to light the vast resources in wealth of this country. In 
a general way it has been understood that the United states was 
a nation of great wealth, perhaps richer than any other country; 
but it needed the necessities of war to give an exhibition of our 
real financial strength. While it was recognized in the spring of 
1898 that the Dingley tariff, under normal conditions, would pro- 
duce ample revenues for the ordinary requirements of the Gov- 
ernment, it was apparent that means mu^t be taken at once to 
provide for the heavy Avar expenditures. April 25, 1893, two days 
after the declaration of war, a bill to provide additional revenues 
was introduced in the House of Representatives. It passed that 
body April 29 and the Senate June 4. The report of the con- 
ference committee was agreed to in the House June 9 and the 
Senate June 10. The bill became a lavs- June 13, 1898, when it re- 
ceived the signature of the President. The necessities of the 
hour required that the Treasiny should be supplied immediately 
with funds. The task was to raise a large sum, available for 
immediate use, in such a manner as to avoid injur}' to the rapidly 
reviving business of the country. The act recognized a true prin- 
ciple in -public finance by making provision to borrow at once a 
sum sufficient to provide for war expenses, while at the same 
time additional taxes were levied in order that the loan might 
be supported by the increase in revenue. No better explanation 
of the tax features of the bill has been given than that made by 
the late Hon. Nelson Dingley on the occasion of its introduction 
in the" House, as follows: 

They [the Committee on Ways and Means] naturally have had recourse 
to the legislation of the period of the civil war, when so large an amount 
had to be raised, and they have found, after a careful consideration of the 
question of taxation, that on the whole it is better at the present time, 
and we trust that that may be all that may be necessary, that about 
$100,000,000 additional revenue should be raised, and that entirely through 
internal-revenue legislation. Hence the war-revenue bill which has been 
reported provides for internal-revenue taxes exclusively. These taxes 
have been selected, first, because we have the machinery for the collection 
of them now, and they can be collected with but slight additions to the 
force and with but slight increase of expense. We have selected then 
also because they were a source of revenue successfully seized upon 
during the civil war, and because they are taxes either upon articles of 
voluntary consumption or upon objects where the tax will be met by 
those who are ordinarily able to pay them; and we have refrained from 
putting a tax in a direction where it Avuuld be purely upon consumption, 



174 WORK OP THE TREASURY DEPARTMENT. 

unless the consumption were an article of voluntary consumption, so that 
the consumer might regulate his own tax, following what Is the accepter! 
rule of taxation in all conutries, with a view of imposing the least hurdou 
and disturbing the business of the country as little as possible. 

Floating the War Loan. 

The act authorized the Secretary of the Treasury to borrow 
$400,000,000, or as much thereof as might be necessary, to defray 
the expenses of the war. Under this authority it was decided to 
borrow $200,000,000. The success which attended the floating- of 
this loan is a memorable one. It was a popular loan in every 
sense of the word. The act itself directed that "the bonds au- 
thorized by this section shall be first offered at par as a popular 
loan under such regulations, prescribed by the Secretary of the 
Treasury, as will give opportunity to the citizens of the United 
States to participate in subscriptions to the loan, and in allot- 
ting said bonds the several subscriptions of individuals shall be 
first accepted, and the subscriptions for the lowest amounts shall 
be first allotted." The Secretary of the Treasury utilized every 
agency at his command to comply with this direction of Con- 
gress. All State and national banks were requested to co-op- 
erate with the Department; the express companies tendered their 
services free of cost in the handling of subscriptions; the Post- 
master-General directed thao fill money-order post-offices be 
charged with the duty of receiving the orders of subscribers, and 
all the newspapers of the United States were invited to dissem- 
minate information concerning the loan. A]] these great agen- 
cies combined to place before the people the fullest information 
that could be given. 

For a period of thirty-one days subscriptions were received, at 
the end of which time it was found that the total of subscriptions 
aggregated only a little under $1,400,000,000, or almost seven 
times the amount of bonds offered to the public. This was a re- 
markable demonstration in favor of the public credit, and it 
showed to other nations the tremendous resources which the peo- 
ple of the United Slates were able to command almost at a mo- 
ment's notice. The success of the war loan, following so lOhg a 
period of depression, had an ell'eet, both art home and abroad, 
scarcely less important than were the naval victories at Manila 
and Santiago. Doubtless 1he purpose of the people thus ex- 
pressed to give abundant support to the Avar was One of the fac- 
tors which brought about its speedy termination. 

The withdrawal of so large a sum as $200,000,000 from active 
employment in commerce and industry without deranging any of 
the vast business interests of the country was a feat success- 
fully accomplished. By the end of the calendar year 1898 almost 
every dollar o'f this great sum had been paid into the Treasury, 
yet under the plan adopted by the Secretary of the Treasury 
such payment was made without occasioning the slightest injury 
to business. In fact, the entire management of the war finances 
was conducted with such skill that not for a moment Avas there 
any interruption to the returning tide of prosperity. Industrial 
and commercial expansion continued as if in fact there had been 
no war, and at its close the business of the country was greater 
in volume than at the beginning, and the national credit, both 
at home and abroad, had been raised to the highest point in our 
history. It may be said with truth that this increased faith in 
the public credit laid the foundation for the achievement of that 
currency reform which Mas accomplished by the act of March 
14, 1900, fixing the standard of value and providing for the re- 
funding of the national debt at the lowest rate of interest on 
public securities ever effected in this or any other country. 



THE DEPARTMENT OF AGRICULTURE. 

Its Splendid Work in Behalf of the Farmers of the Country 
Under the Administration of President McKinley. 

The Department of Agriculture has well performed its work 
in behalf of that most important and largest class of 
our citizens, l!e ■ ■<■ ■■ ■■■:; ^d those who engaged in agricultural 



WORK OF THE DEPARTMENT OF AGRICULTURE. 175 

.pursuits of all kinds. The selection by the President for this 
important duty as a member of his Cabinet was a most happy 
one. lion. James Wilson, of the great agricultural State of 
Iowa, had for many years been one of its most successful farm- 
ers, and at the same time a careful student of agriculture in 
those lines which enable an intelligent combination of science 
and practical experience. A thorough student of soils and their 
various products and of all matters pertaining to farm life and 
production, he brought to the Department a rare combination of 
practical experience and hig'h intelligence. Adding to these his 
long- experience as a member of the State legislature, member 
of Congress, director of the State agricultural experiment sta- 
tion, and professor of agriculture at the Iowa fetate College, 
he was especially fitted to give to the farmers of the country 
the best results by far that they have obtained from the work 
of that great Department, established by Republican legislation 
in 1862, in their special interest- — the only Department of the 
Government which devotes its attention to the interests of a sin- 
gle class of our population. 

Studying- the Diseases of Farm Animals. 

During the past three years sexeral important problems con- 
cerning the suppression and eradieatiou of contagious and in- 
fectious diseases of domestic animals have been carefully stud- 
ied. The diseases selected for investigation have been those 
which experience and recorded observations have proven to be 
most injurious from an economic point of view. Especial at- 
tention has been given to the cattle disease known as blackleg, 
a disease which, although it occurs more or less throughout the 
United States, was not recognized as a cause of very serious 
losses until about four years ago, when this investigation was 
begun. It has been proved that blackleg is the most destructive 
disease known among young cattle in this country, and the 
annual loss caused by it must be counted in millions of dollars. 
As it seemed to be on the increase in many of the principal 
cattle-raising States, and as it was known from investigations 
made in Europe that blackleg may be prevented through vac- 
cination, it was decided to try the same remedy in this country. 
Experiments made in the field with the so-called double vaccine 
soon proved that the method could not be employed where the 
question was to treat thousands of half-wild cattle, and it was 
therefore decided to try the method known as single vaccina lion, 
which had not been previously used in this country. Experi- 
ments covering more than a year resulted in the preparation 
of a vaccine which, through a single inoculation, would render 
all treated animals practically immune against this disease. 

During the past three years there have been prepared nearly 
2,000,000 doses of blackleg vaccine, which have been distributed 
among the farmers and cattle owners in the infected districts, 
with the result that the mortality among the young cattle in 
the infected districts has been reduced from 10 to 15 per cent 
annually to one-half of 1 per cent. At the present rate of dis- 
tribution more than 2,000,000 calves annually will be vaccinated, 
which means a saving to the country of five or six millions of 
dollars every year. 

The animal parasites of sheep have been given much attention, 
and comparative tests have been made of the most promising- 
methods of treatment. The gasoline treatment has given ex- 
tremely satisfactory results, not only destroying the parasites of 
the stomach and intestines, but apparently also those in the lungs 
and air passages, including- the larvae of the oestrus (grubs) in 
the nasal chambers. If on further trial this remedy continues 
to yield the results which have apparently been obtained by its 
use up to this time, it will be of very great assistance to the 
sheep industry. In all sections of the country, but particularly 
in the South, stomach worms, intestinal worms, lung worms, 
and grubs in the head have made sheep raising a difficult and 
precarious industry. But this treatment, which is very cheap 
and easily administered, seems to solve the problem, and makes 
it possible to raise sheep safely and successfully where hereto- 
fore the animals have been destroyed or rendered valueless 
through the rapid invasion of these parasites. 

Another disease of sheep, called provisionally pseudo-tuber- 
culosis, affects the lymphatic glands and appears to be quite com- 



176 WORK OF THE DEPARTMENT OF AGRICULTURE. 

mon in sonie sections of the country. The bacillus causing the 
disease has been discovered, but the conditions under which the 
disease is communicated have not yet been determined. 

The preparation of antitoxic serums for hog* cholera and swine 
plague has been conducted on a large experimental and prac- 
tical scale. During the past two years extensive field experi- 
ments have been conducted in several counties in the State of 
Iowa with altogether satisfactory results, from 70 to 80 per cent 
of the treated animals being saved. There have been two or 
three herds out of some 23,000 to 24,000 animals that were treated 
in Iowa that have not shown good results. The disease in these 
herds, however, was found to be of a very virulent character, 
more virulent than other outbreaks with which the Department 
had previously had to contend. 

The method of serum treatment at present is not perfect, but 
it has given uniformly very much better results than any other 
method of treating these diseases in swine than has heretofore 
been suggested. The experiments are being continued with a 
view of perfecting the details. 

The Dairy Interests. 

Experimental exports of selected creamery butter were made 
to England for the purpose of attracting attention to the fine 
butter produced in this country and of gaining information 
beneficial to all persons desiring to sell in British markets. 
Shipments were made periodically during the greatest butter- 
producing- months of the year 1897. In this experiment every 
feature of the shipment of butter was considered — the characters 
of butters in demand in English markets, the kinds of packages 
most desirable, the best methods of packing and transportation 
as well as original cost, transportation charges, and selling 
prices. All considered, the operations of the first year were re- 
garded as reasonably satisfactory in a business way as well as 
otherwise, while at the same time a number of points were de- 
veloped showing where greater economy could be practiced in 
the experiments which were to follow. A full report of this 
work appeared in the Fifteenth Annual Report of the Bureau 
of Animal Industry. Experiments along the same line were 
conducted in ,1898 and in 1899 in shipments to Asiatic countries 
with like satisfactory results, and a report will soon appear in 
the Sixteenth Annual Report of the Bureau. 

In addition to the abo\e, some interesting and satisfactory ex- 
periments in the shipment of eggs, with the same objects in 
view as in the "butter shipments, have been conducted. A report 
of this work will also appear in the Sixteenth Annual Report 
of the Bureau. 

The inspection of live stock and their products (meat inspec- 
tion) has been extended to 60 additional abattoirs and packing 
houses in 16 cities and is now carried on at 148 abattoirs in 
45 cities. 

Inspection has been established at one abattoir where horses 
are slaughtered and the flesh prepared for exportation. A reg- 
ular inspection of horses exported to foreign countries has been 
established and this has also been extended to the examination 
of horses which are imported from foreign countries into the 
United States. 

Measures have recently been adopted for preventing the inter- 
state traffic of sheep affected with scab and efforts made for co- 
operation with State authorities for the eradication of this dis- 
ease. Sheep which are infected with scab or have been exposed 
to the infection are prohibited from shipment from one State 
or Territory into another unless dipped in a preparation approved 
by this Department. In pursuancec of this order 1,781,468 sheep 
have been dipped which were either infected with or exposed to 
the contagion of this disease. The effect of this order has been 
extremely satisfactory. The indications are that it will soon be 
possible to make stock cars, the principal stock yards, and other 
channels of interstate commerce safe and free from infection, 
in which case store sheep may be purchased in the market with- 
out danger of infection. 

The antemortem inspections of animals numbered 42,310,017 in 
1897, 51,335,398 in 1898, and 53,223,176 in 1899; and the post-mor- 
tem inspections numbered 26,580,689 in 1897; 31,116,833 in 1898, 
a ad 34,163,155 in 1899. 



WORK OF THE DEPARTMENT OF AGRICULTURE. 177 

Development of New Agricultural Industries. 

One of the first enterprises taken up under Secretary Wilson 
was the investigation of the growing in this country of those 
agricultural products for which we have heretofore depended on 
foreign countries. The first one taken up was chicory cultiva- 
tion. Our imports of this product in the fiscal year 1896 had a 
value of $225,229.31; our imports for the years 1898 and 1899 
had a value of $14,877 and $13,470, respectively. As thus indi- 
cated, the chicory consumed in the United States is now pro- 
duced almost entirely by our own farmers. This is a striking 
illustration of the application of the best American methods of 
farming to a foreign agricultural industry. 

Several other crops of foreign countries are now under investi- 
gation, and reports on them will be published as the experiments 
are completed. 

Fiber Plants. 

The special appropriation for fiber investigations which had 
been made for some years having been discontinued on June 30, 
1898, this line of work was incorporated with that of the Division 
of Botany, and, while no funds have been provided, experimenta- 
tion has been begun in a small way, directed toward the estab- 
lishment of a fine hemp industry in the United States, as well 
as toward the growing of Egyptian cotton. While the experi- 
ments on these crops have not yet been completed, the present 
indications give promise that the Department will ultimately be 
in a position to indorse them as worthy of commercial trial. 

Seed Testing. 

The movement against the sale of impure or nongerminable 
seed by unscrupulous dealers resulted in the enactment of a pro- 
vision in the agricultural appropriation act* of 1898 authorizing 
the Department to test seed purchased in the open market and 
publish the results of the tests, when not up to the standard, 
together with the names of the seedsmen by whom the seeds were 
sold. Many tests have been made under this law, but the De- 
partment, after careful investigation of the commercial questions 
involved, has preferred up to the present time to notify seeds- 
men privately, in case the tests showed an inferior article, rather 
than to publish the information. It has come to be more and 
more evident, as this work has progressed, that one of the best 
means of preventing the sale of inferior seed is to demonstrate 
to farmers and other seed-purchasing classes that the only sure 
way to secure high-grade seed is to test it themselves or to get 
some reliable organization to test it. The wide extension and 
appreciation of information of this sort will, it is believed, be a 
good foundation for the ultimate adoption of vigorous measures 
for protecting the public against unscrupulous dealers. 

The action of the Department in conducting an educational 
campaign against the sale of inferior seed has been heartily 
seconded by the agricultural experiment stations, and the officers 
of the seed-testing laboratory in the Department have been 
largely instrumental in devising a special apparatus and a system 
of rules for seed testing which have been officially adopted by 
the Association of Agricultural Colleges and Experiment Sta- 
tions. 

Seed and Plant Introduction. 

The determination on the part of the Secretary of Agriculture 
to use a portion of the seed-distribution funds in introducing new 
and valuable products from other countries resulted in sending a 
special agent to Russia in 1897 to procure a stock of cereals, for- 
age plants, and other things promising to be worthy of introduc- 
tion into this country. At the same time, under the direction of 
the Secretary of Agriculture, the Division of Forestry vvas en- 
deavoring to make provision for securing from the arid regions 
of the world any trees giving promise of successful introduction 
into the arid parts of the United States. This work, together 
with the distribution of the importations made by the Eussian 
agent, led to the establishment in the Division of Forestry of an 
agency for carrying out these two objects. In the succeeding 
year a special provision was inserted in the seed-purchase law 
authorizing the expenditure of $20,000 for the purpose of carry- 



178 WORK OT THE DEPARTMENT OF AGRICULTURE. 

ing on work of this character, and this was afterwards organized 
as a branch of the Division of Botany, devoted to seed and plant 
introduction. The organization consists, first, iff a group of 
agricultural explorers, who are sent to investigate particuar 
agricultural industries and secure a stock of new varieties or 
new kinds of plants suitable for introduction into American agri- 
culture; and, secondly, of an office force which receives and dis- 
tributes the importations and keeps records of the experimental 
work done on them. The writing of reports on the plants thus 
introduced is intrusted either to the explorers after they return, 
or to members of the permanent experimental force of the De- 
partment, or to outside investigators, as may seem most appro- 
priate and most conducive to effective results. 

A large number of improved products have been added to 
American agriculture, and while most of them are still in the 
experimental stage it is already assured that certain of them 
will add millions of dollars annually to American products. 
Notable among these are a highly productive and otherwise su- 
perior rice from Japan, a drought and cold resistant alfalfa from 
Turkestan, a drought-resistant grass from southern Russia, and 
several cereals particularly adapted to the conditions of our arid 
regions. 

Tropical Agriculture. 

Recent political changes having brought the United States into 
new relations with tropical lands, the question of tropical agri- 
culture has been brought conspicuously to the attention of the 
American people, and the large number of requests for infor- 
mation on the subject has shown how widespread this interest 
is. The Division of Botany has already published an account of 
vanilla culture as practised in the Seychelles Islands, and has 
made an investigation of the plant products and agricultural 
crops of Porto Ricot devoting particular attention to the coffee 
problem, and is engaged also in investigating, so far as can be 
done without additional funds, the subject of India-rubber cul- 
tivation. 

In addition to the lines of work undertaken by the Division of 
Botany since 1896, enumerated in the above statement, several 
other lines of investigation established earlier have been carried 
on, and other new ones of less importance have been taken up. 
In the brief period that has elapsed since these new investiga- 
tions were initiated it has, of course, been possible to prepare 
reports on only a comparatively few, but the new investigations 
have proceeded in such a manner that reports are constantly 
coming to completion, and the next few years will indicate in 
the publications of the Division, even better than has already 
been indicated, the results of these new lines of work. 

A Study of the Soils of the Various Sections and Their Adapta- 
bility to Various Branches of Agriculture. 

The most important work of the Division has been the survey 
and mapping of the soils in a number of the important agricul- 
tural districts of the United States. The most important work 
of this kind has been in the arid portions of the United States, 
where irrigation is practised. About 450,000 acres have been sur- 
veyed and mapped in some of the principal irrigated districts of 
Montana, Utah, New Mexico and Arizona, the maps so prepared 
having a very practical value, as they show the distribution of 
the different types of soil, which lands can be irrigated with safe- 
ty, those which require special care in the application of water 
on account of alkali, and those which have too much alkali for 
cultivation without special efforts for reclamation. Practical 
methods for removing the salts have been and are being worked 
out. In the vicinity of Billings, Mont.* thousands of dollars are 
being invested now as a result of our investigations, and it is 
likely that this investment will be worth hundreds of thousands 
of dollars to the immediate vicinity. 

In the vicinity of Salt Lake, Utah, there is a large area of 80,- 
000 acres of land at present lying idle on account of the accu- 
mulation of alkali, which it has been estimated could be re- 
claimed for a comparatively small sum, when it would be worth 
in the neighborhood of $5,000,000. 



WORK OT THE DEPARTMENT OF AGRICULTURE. 179 

In the Pecos Valley, New Mexico, plans were devised for the 
reclamation of a large area in the immediate vicinity of Roswell 
which has lately been ruined by alkali and seepage Water. It is 
estimated that at Roswell alone the damage to the land has 
amounted to at least $500,000. This land can all be reclaimed, 
and steps have been taken since our investigations to reclaim this 
land and to protect the rest of this area by methods pointed out 
the States of Massachusetts, Connecticut, Maryland and Louisi- 
| ana, besides reconnoissance over a much larger area. 

Over 1,000,000 acres of land have been surveyed and mapped in 
by this Division. 

In the Connecticut Valley the tobacco lands were classified and 
mapped, and the influence of the soil on the character of the to- 
bacco was studied. In addition to this the cause of the fermenta- 
tion of the cigar-leaf tobacco has been worked out, and an im- 
proved method of fermenting' the Connecticut tobacco has been 
introduced, which it is believed will revolutionize the practice 
in that State. This method gives a much more uniform product, 
and thus improves the value of the leaf. It shortens the time re- 
quired to ferment the tobacco about eight months, and so reduces 
the insurance and the loss of interest on the money invested. It 
is estimated that the value of this work will amount to at least 
$500,000 per annum to the farmers of the Connecticut Valley. The 
investigations are being carried on still further in order to see 
whether the quality of the tobacco can be still further improved. 
There is reason to believe it can be. 

In addition to these practical results, improvements have been 
made in the methods of soil investigation, both in the laboratory 
and in the field. Some very important problems connected with 
the physical and chemical constitution of soils are being worked 
out, which give promise of being of great value in economic 
lines. 

Cordial Co-operation With State Experiment Stations. 

Under the present Administration the work of the Office of Ex- 
periment Stations has been more than doubled. This is due in 
part to the development of old enterprises and in part to the es- 
tablishment of new ones. 

The keynote of the present policy is co-operation. Through 
the Department and the stations thousands of practical experi- 
ments are now annually carried on in co-operation with farmers 
in all sections of the Union. Cordial relalions are maintained 
with officers of the stations, and in many ways the Department 
helps to make their work more efficient. At the same time it has 
not hesitated to point out the weaknesses of the stations in con- 
fidential communications and in reports to Congress. In such 
criticism the aim has not been to tear down, but to build up. 
The Department and the stations ape now working- together 
more thoroughly and harmoniously than ever before, and the 
operations of these two great agencies touch every interest of 
American agriculture. 

To Aid Agricultural Education. 

Under the liberal policy of the past three years the office has 
largely increased its efforts to aid enterprises for the practical 
education of the farmer. It has joined actively in the movement 
to improve the methods of teaching agriculture in the colleges 
and to introduce agricultural subjects and nature study info the 
public schools. It has shown what is being done in these lines in 
other lands, and how we need to more thoroughly develop our 
system of agricultural education in order to keep pace with the 
strenuous efforts of our industrial rivals. It has collated and 
published information regarding the farmers' institutes, show- 
ing that now these institutes are held in 43 States, and are an- 
nually attended by half a million farmers. It has i>romoted the 
establishment of reading courses for farmers and published lists 
of useful books and bulletins, so that now any farmer in the 
United States can find out, by sending a postal card to the De- 
partment, what are the best books and public documents for him 
to read to keep abreast of the times in his. business. 






ISO WORK OF THE DEPARTMENT OF AGRICULTURE. 

Publications for Farmers. 

In accordance with the general policy announced by Secretary 
Wilson at the outset of his administration, this office has given 
much attention to the preparation of farmers' bulletins. Twen- 
ty-three of these bulletins have been prepared in this office dur- 
ing the past three years, of which 14 have constituted the new 
series entitled "Experimental Station Work." In this series the 
office has summarized the practical results of investigations at 
the agricultural experiment stations and kindred institutions in 
this and other countries. In this way our farmers in every State 
are now being made acquainted with the practical results of ex- 
periments made by all our experiment stations, and thus the 
money given by Congress for the maintenance of experiment sta- 
tions in the several States is made of benefit to the agriculture 
of the whole country. Besides these popular bulletins, the of- 
fice has issued during this period three volumes (36 numbers) of 
the Experiment Station Record and 40 technical bulletins. During 
the past three years an average of somewhat over a million 
copies of documents have been issued each year, of which about 
800,000 copies have been in the farmers' bulletin series. 

Nutrition Investigations. 

The investigations on the nutritive value of human foods, 
which are carried on in co-operation with agricultural colleges 
and experiment stations in different parts of the country, have 
been materially developed and strengthened. Twenty reports 
have been published during the past three years, and the results 
of these investigations are now largely taught in colleges and 
schools of different grades throughout the country. During this 
period the Atwater-Rosa respiration calorimeter has been com- 
pleted, and experiments have been made with it regarding the 
utilization of food in the maintenance of the human body and 
the production of heat and energy therein, which have attracted 
very wide attention, as they have marked in some respects the 
highest point which science has yet reached in such investiga- 
tions. 

Irrigation Investigations. 

The first appropriation for these investigations became avail- 
able July 1, 1898. The work has been organized along two gen- 
eral lines: (1) The collation and publication of information re- 
garding the laws and institutions of the irrigated regions in their 
relation to agriculture; and (2) the determination of the actual 
volume of water (duty of water) used by practical irrigators on 
different crops and soils. These investigations have already been 
carried on in fifteen States and Territories, largely in co-opera- 
tion with the agricultural experiment stations and State irriga- 
tion engineers. While the headquarters of the investigations 
have been established in the arid region (at Cheyenne, W 1 yo.), 
and the investigations have been largely carried on there, the 
usefulness of irrigation in the East has also received attention, 
valuable experiments in this line being now in progress in New 
Jersey and South Carolina. So great has been the need of accu- 
rate information regarding the real conditions prevailing in the 
irrigated region and the actual requirements of water by crops 
that the demands for the extension of this work have been great- 
er than the Department could meet, though the appropriation 
for this purpose was increased from $10,000 to $35,000 during the 
present year. In this enterprise the Department is working along 
lines which are new in this country, and it is believed that an or- 
ganization for this work has been effected which is thoroughly 
efficient; so that shortly there will be developed a trained force 
of experts, whose services will be of incalculable benefit to a re- 
gion which embraces over a third of the area of the United States. 

Progress in Sugar-Beet Investigations. 

An attempt has been made to define with greater certainty the 
areas in the United States suited to the growth of high-grade 
sugar beets. To this end, seeds of the sugar beet have been dis- 
tributed in the most promising localities and grown under iden- 



WORK OF THE DEPARTMENT OF AGRICULTURE. 181 

tical conditions of culture, according to instructions prepared by 
the Division. The only variance, therefore, has been the soil and 
climate. The beets thus grown have been analyzed, either in the 
Division of Chemistry or at the agricultural experiment stations, 
and their saccharine qualities ascertained. As a result of the 
experiments which have been conducted in this manner, the 
areas of the original map constructed by the Division, showing 
the probable areas suited to beet culture, have been more defi- 
nitely pointed out. This work is still in progress, and if con- 
tinued for a few years longer will result in obtaining the data 
whereby the sugar-beet areas of the country can be mapped with 
a considerable degree of accuracy. 

Section of Foreign Markets. 

Of the work accomplished by the section of foreign markets 
during the past three years one of the most important features 
'was the study of trade possibilities growing out of the Spanish- 
American war. The islands that were brought into closer rela- 
tionship to the United States by the war naturally became the 
subject of great commercial interest, and numerous inquiries 
were received regarding the trade opportunities that might be 
expected to result. 

As the war progressed the requests for information relative to 
Cuba, Porto Rico and the Philippines increased to such an extent 
that the section was obliged to devote its attention almost en- 
tirely to the subject of these new dependencies. To meet the 
active demand for information along this line, several special re- 
ports were prepared for publication embodying such data as 
could be obtained regarding the commerce that was beginning 
to attract so much interest. 

Experiments With Grasses and Forage Plants. 

Experiments with grasses and forage plants have been vigor- 
ously prosecuted during the past three years. These experi- 
ments are necessary in order that ranchers and farmers may be 
informed of the kinds suitable for their respective districts. Af- 
ter these preliminary facts are determined the promising vari- 
eties can be recommended and adopted without further and use- 
less expenditure of time and money. Many of the vast cattle 
ranges of the West have been practically destroyed by over- 
stocking or mismanagement, and it has become a serious ques- 
tion as to what are the best grasses with which to reseed them. 
The Division has spent much time and energy in this line of 
investigation, and, through its work in the field and experiments, 
is prepared to meet many of the more important forage prob- 
lems of the various parts of the United States. During the past 
three years the agrostologist has distributed 5,565 packages of 
seeds of grasses and forage plants, embracing 251 varieties. These 
seeds were largely procured through foreign importations and 
by special collections in the field made by agents or employees 
of the division. 

In the distribution made it has been necessary to consider the 
adaptation of varieties for special purposes such as the renew- 
ing of* worn-out prairies, holding of embankments subject to 
wash, binding of drifting sands, restoring fertility to the soil, 
soiling crops, cover crops, grasses for lands subject to overflow, 
for dry lands, for semi-arid districts, for alkali soils, for lawns, 
for parks and pleasure grounds; in fact, for every purpose to 
which grasses and forage plants are applied and under every 
condition of soil and climate which our country presents. About 
2,000 reports have been received from those to whom seeds have 
been sent. The information thus acquired is of great value and 
is presented in Bulletin No. 22 of the Division, now in press. 
One of the most important introductions is that of Turkestan al- 
falfa, seed of which was widely distributed in 1898. It is too 
early to make positive assertions respecting this variety, but 
the indications are that it is more hardy, and especially more 
resistant to drought, than the common variety. The reports from 
experimenters which have already been received will soon be 
published as a circular of the Division, The material has been 
compiled for this purpose. 



PACIFIC RAILROAD SETTLEMENTS. 

A Magnificent Keeord — Principal and Interest of the Debt Re- 
covered and Many Millions Saved to the Government and 
People. 

The settlement of the Pacific Railroad indebtedness is to 
be ranked as one of the great achievements of President Mc- 
Kinley's Administration. This indebtedness had for years been 
a subject of fruitless endeavor; all efforts, either by Congress 
or the Executive Departments, prior to 1897, were of little avail 
in protecting- the Government's^ interests in these roads, in fact 
there were grave doubts whether the Government would succeed 
in being reimbursed, even in part, the vast sum expended by the 
United States in aid of their construction. 

The discovery of gold in California, the rapid increase in wealth 
and population in the territory west of the Rocky Mountains, 
and a movement on the part of the older States to establish 
closer connections during the civil war with those outlying com- 
munities, led Cong-ress in 1862 to authorize the construction of 
a railroad to the Pacific Ocean. The direct benefit to be derived 
by the Government was the use of the same for postal, military, 
and other purposes. The act of July 1, 1862, chartering the 
Union Pacific Railroad Company, was not sufficiently liberal, and 
therefore nothing was accompli shed under its provisions. The 
Union Pacific Company was organized as provided by the act, 
but no one was found who would venture money in the construc- 
tion of the road. 

Historical Pvevi3A. 

Congress was impressed with the urg-ent necessity of com- 
pleting such a road to the Pacific Ocean, and with the immense 
economic advantages which would follow the construction of a 
transcontinental line. It, therefore, on July 2, 1864, amended 
the act of 1862, by making provisions more favorable to the 
companies. The act of 1862 provided that the Government should 
have a first mortgage on the property of the company, while 
the act of 1864 provided substantially that for the bonds the 
Government should issue in aid of the construction of the road 
it should take a second mortgage. Two companies were organ- 
ized under the provisions of the act of 1864, and entered ener- 
getically upon the work of construction. The road was built 
from the California end eastward by the Central Pacific Railroad 
Company, and from the Missouri River westward to the common 
meeting point at Ogden by the Union Pacific Company. 

Their lines were united May 10,1869, anticipating by more than 
seven years the time required by Congress therefor. The Union 
Pacific Company constructed 1,034 miles and the Central Pacific 
743 miles. The road of the latter company was subsequently ex- 
tended 140 miles, and the lines of the two companies from the 
Missouri River to San Francisco represented a mileage of 1,917 
miles. 

In aid of these roads and connecting branches the United 
States issued bonds to the amount of $64,623,512. The United 
States failing to be reimbursed for the interest paid on these 
bonds, it became necessary, in protection of the interests of the 
Government, to pass the act of May 7, 1878, known as the "Thur- 
man Act." This act provided that the whole amount of com- 
pensation which might, from time to time, be due to the several 
railroad companies for services rendered the Government should 
be retained by the Government, one-half thereof to be applied to 
the liquidation of the interest paid and to be paid by the United 
States upon the bonds issued to each of the companies, the other 
half to be turned into a sinking fund. 

The Funding Proposition. 

Put it soon became apparent that with the approaching ma- 
turity of bonds issued in aid of the roads the provisions of 1he 
"Thtirman Act" were not adequate to the protection of the Gov- 
ernment's interests. Efforts in and out of Congress w"ve per- 
sistently made looking to a settlement of this vast indebtedness, 

183 



THE PACIFIC RAILROAD SETTLEMENTS. 183 

but without success. So recently as the Fifty-fourth Congress 
an effort was made to pass a bill to refund the debts of the 
Pacific Railroad companies, but such a bill was defeated in the 
House by a vote of 167 nays and 102 yeas. 

On January 12, 1897, the day following the defeat of the fund- 
ing- bill, the Attorney-General was informed by the President 
that default had occurred in the payment of the Union Pacific 
and the Kansas Pacific indebtedness to the Government, and he 
was directed to make such arrangements as were possible to 
secure, as far as practicable, the payment of their indebtedness. 
An agreement was entered into between the Government and 
the reorganization committee of the Union Pacific Kailroad by 
which the committee guaranteed, should the Government under- 
take to enforce its lien by sale, a minimum bid for the Union 
and Kansas Pacific lines that would produce to the Government 
over and above any prior liens and charges upon the railroads 
and sinking fund the net sum of $45,754,059.99. In performance 
of this agreement the bid was guaranteed by a deposit of $4,- 
500,000. 

Increased Bids for the Road. 

Pursuant to the agreement with the reorganizal iou committee, 
bills Were filed in the United States circuit courts for the fore- 
closure of the Government lien. The decrees entered for the sale 
of the roads not. being" s;il isl'act oi y to tine ( iovcrnmcnt, the pro- 
priety of an appeal was considered and papers were prepared 
for this purpose. At. tins juncture t ho reorganization committee 
came forward with an offer to increase its hid, making the total 
$50,000,000 instead of $ 15,?:, 1,059.99. 

Subsequently, to settle all points in dispute, the reorganization 
committee decided to abandon this second bid, and to increase 
the minimum amount to be offered for the property to the sum 
of $58,448,223.75, being the total amount due the Government 
on account of the Union Pacific road, as stated by the Secretary 
of the Treasury, including the sum of $ 1,549,368.26 cash in the 
sinking fund. Such an amount was bid by the reorganization 
committee on November 1, 1897, and the sale was confirmed by 
the court on November 6, 1897. After the confirmation of the 
sale the whole amount was paid into the Treasury of the United 
States in convenient installments, thus relieving the Government 
from any loss whatever upon its claim for principal and interest 
due upon its subsidy, and bringing to a final and most satisfac- 
tory termination a long-sl anding and troublesome question. 

In the case of the Kansas Pacific indebtedness, by decree of 
the court an upset price on the sale of the property W»s fixed at 
a sum which' would yield to the Government $2,500,000. The 
reorganization committee in conference with the Government de- 
clared its purpose of making no higher bid than that fixed by 
the decree of court, so that the Government was confronted with 
the danger of receiving for its total lien upon this line, amount- 
ing to nearly $13,000,000, principal and interest, only the sum of 
$2^500,000. 

Believing the interests of the Government required that an 
effort should be made to obtain a larger sum, and the Govern- 
ment having the right to redeem the incumbrances upon the 
property which were prior to the lien of the Government sub- 
sidy, by paying the sums lawfully due in respect thereof out 
of the Treasury of the United States, so that the United States 
should thereupon become subrogated to all rights and securities 
theretofore pertaining to the liens and mortgages in respect of 
which such payments should be made, the President, on Feb- 
ruary 8, 1898, authorized the Secretary of the Treasury to pay 
out of the Treasury", to the person or persons lawfully entitled 
to receive the same, the amounts lawfully due upon the prior 
mortgages upon the eastern and middle divisions of said road. 

Steps were taken by the Government looking to the fulfillment 
of this direction, whereupon the reorganization committee offer- 
ed to bid at the sale for said road a sum which would realize 
to the Government the whole amount of the principal of the 
debt, $6,303,000. It was believed that no better price than this 
could be obtained at a later date if the sale should be post- 
poned, and it was deemed best to permit the sale to proceed upon 
the guaranty of a minimum bid which would realize to the 
Government the whole principal of its debt. The sale thereupon 
took place, and the property was purchased by the reorganiza- 



184 THE PACIFIC RAILROAD SETTLEMENTS. 

tion committee. The sum yielded to the Government was $6,- 
303,000. It will thus be perceived that the Government secured 
an advance of $3,803,000 on account of its lien over and above 
the sum which the court had fixed as the upset price, and which 
the reorganization committee had declared was the maximum 
which they were willing to pay for the property. 

Nearly Nineteen Millions Gained on One System. 

The result of these proceedings against the Union Pacific sys- 
tem embracing the main line and the Kansas Pacific line, is that 
the Government has received on account of its subsidy claim 
the sum of $64,751,223.75, which is an increase of $18,997,163.76 
over the sum which the reorganization committee first agreed 
to bid for the joint property, leaving due the sum of $6,588,900.19 
interest on the Kansas Pacific subsidy. The prosecution of a 
claim for this amount against the receivers of- the Union Pacific 
Company in 1898 resulted in securing to the Government the 
further sum of $821,897.70. 

The indebtedness of the Central Pacific Railroad Company to 
the Government became due January 1, 1898, when default in 
payment was made by the company. The deficiency appropria- 
tion act of July 7, 1S98, appointed the Secretary of the Treasury, 
the Secretary of the Interior, and the Attorney-General a com- 
mission with full power to settle the indebtedness to the Gov- 
ernment growing out of the issue of bonds to aid in the con- 
struction of the Central Pacific and Western Pacific roads upon 
such terms and in such manner as migiit be agreed upon by 
them, or by a majority of them, and the owners of said rail- 
roads, subject to the approval of the President. 

An agreement for the settlement of this indebtedness was en- 
tered into between the said commissioners with the railroad 
companies on February 1, 1899. At that date the amount due 
the United States for principal and interest upon its subsily 
liens upon the Central Pacific and Western Pacific railroads 
was $58,S12,715.4S, more than one-half of which was accrued in- 
terest upon the principal debt. 

The Central Pacific Settlemnt. 

The agreement for settlement provided for the funding of this 
amount into twenty promissory notes bearing date February 1, 
1899, payable, respectively, on or before the expiration of each 
successive six months for ten years, each note being for the 
sum of $2,940,635.78, or one-twentieth of the total amount due, 
the notes to bear interest at the rate of 3 per cent per annum, 
payable semi-annually, and having a condition attached to the 
effect that if default be made either in the payment of principal 
or interest of either of said notes or any part thereof, then all 
of the said notes outstanding, principal and interest, to imme- 
diately become due and payable notwithstanding any other stip- 
ulation of the agTeement of settlement. 

It was further agreed that the payment of principal and in- 
terest of the notes should be secured by the deposit with the 
United States Treasury of $57,820,000 face value of first refund- 
ing mortg-age 4 per cent gold bonds, to be thereafter issued by 
the Central Pacific or its successor having charge of the rail- 
roads then owned by said company, such bonds to be part of 
an issue of not exceeding $100,000,000 in all, and to be secured 
by mortgage upon all railroads, equipments, and terminals owned 
by said Central Pacific Railroad Company, such mortgage to be 
a first lien upon such property, or to be secured by the deposit 
as collateral of certain percentages of the outstanding bonds 
upon such property or on the different divisional parts thereof. 

The notes provided for by this ag-reement were duly executed 
and delivered to the Treasurer of the United States in conformity 
with the terms of the agreement. In pursuance of another pro- 
vision of the agreement, the four earliest maturing notes were 
purchased by Spej'er & Co., March 10, 1899, and the proceeds, 
amounting to $11,762,543.12, and accrued interest to the date 
of payment, $35,771.02 — in all, $11,798,314.14 — were received and 
covered into the Treasury March 27, 1899, as part payment of the 
indebtedness of the Central Pacific and Western Pacific Railroad 
companies. The properties of the various companies compris- 
ing the Central Pacific system were subsequently conveyed to a 



THE NEW CURRENCY LAW. 185 

new corporation called the Central Pacific Railway Company, 
which latter company executed the mortgage and bonds pro- 
vided for by the agreement of settlement. 

On October 7, 1899, bonds were delivered to the Treasury De- 
partment by the Central Pacific Railway Company to secure the 
outstanding notes held by the Treasury in conformity to the 
terms of the agreement of settlement. The United States there- 
fore holds the notes of the Central Pacific Railroad Company, 
guaranteed by the Southern Pacific Railroad Company, to the 
Amount of $47,050,172.36, bearing interest payable semi-annually 
at the rate of 3 per cent per annum, and secured by the deposit 
of an equal amount of first-mortgage bonds of the Pacific Rail- 
way Company, thus providing, beyond doubt or peradventure, 
for the sure and gradual payment of the whole of this subsidy 
debt, and providing in the meantime for the payment of interest 
at the rate of 3 per cent upon the unpaid balances. The United 
States, through the settlement agreement thus entered into, will 
be reimbursed the full amount of the principal and interest of 
the Central Pacific and Western Pacific debt, aggregating $58,- 
812,715.48. 

The amounts now remaining due the United States (March I, 
1900) from Pacific railroads on account of bonds issued in aid 
of their construction is shown in the following statement: 

Efforts are now pending looking to the collection of this in- 
debtedness. 

So that it appears out of an indebtedness of about $130,000,000, 
more than one-half of which consists of accrued interest, the 
Government has realized in cash or its equivalent the sum of 
$124,421,670.95 within a period of less than two years. 

No other Administration in the history of the United States 
has ever so quickly, so thoroughly, and so satisfactorily enforced 
the settlement of large claims held by the Government against 
business corporations, nor has any similar settlement ever pre- 
viously been made by the Government to such good financial 
advantage. The claims were due, the President insisted upon 
their collection, and this was done in a prompt and business- 
like manner. 



THE NEW CURRENCY LAW. 

It Is Already Proving Its Value by an Increase in Our Cur- 
rency and in the Number of Banks for Convenience of the 
Masses. 

Among the numerous acts of the two Congresses since Pres- 
ident McKinley's election, the one next in importance after that 
which restored protection to our industries is the currency act. 
It has done for our currency what the Dingley Act did for our in- 
dustries and commerce — given stability; confidence, activity and 
prosperity. Already there have been nearly 300 applications for 
permission to establish national banks witb capital of less than 
$50,000 each, showing that many communities where no national 
banks existed will now be given the advantages of this service, 
and the increase in national-bank currency already amounts to 
many millions of dollars. 

The following is a concise statement of its provisions, made by 
the Secretary of the Treasury, on the day on which it went into 
operation: 

Secretary Gage's Statement. 

The financial bill has for its first object what its title Indicates— the 
fixing of the standard of value and the maintaining of a parity with that 
standard of all forms of money issued or coined by the United Sta*tes. 
It reaffirms that the unit of value is the dollar, consisting of 25.8 grains 
of gold of nine-tenths fine, but from that point it goes on to make it the 
duty of the Secretary of the Treasury to maintain all forms of money 
issue or coined at a parity with this standard. It puts into the hands of 
the Secretary ample power to do that. For that, purpose the bill pro- 
vides in the Treasury bureaus of issue and redemption and transfers from 
the general fund of the Treasury's cash $150,000,000 in gold coin and bul- 
lion to the redemption fund, that gold to be used for the redemption of 
United States notes and Treasury notes. That fund is henceforth abso- 
lutely cut out of and separated from the cash balance in the Treasury, 
and the available cash balance will hereafter show a reduction of $150,- 
000,000 from the figures that have heretofore prevailed. The $150,000,000 
redemption fund is to be used for no other purpose than the redemption 
of United States notes and Treasury notes, and those notes so redeemed 
may be exchanged for gold in the general fund or with the public, so that 
the reserve fund is kept full with gold to the $150,000,000 limit. 



186 THE NEW CURRENCY LAW. 

Power Given the Secretary. 

The Secretary is given further power. If redemptions go on so that the 
gold in this reserve is reduced below $100,000,000. and he is unable to 
build it up to the $150,000,000 mark by exchange for gold In the general 
fund or otherwise, he is given power to sell bonds, and it is made his 
duty to replenish the gold to the $150,000,000 mark by such means. 

Endless Chain Broken. 

The "endless chain" is broken by a provision which prohibits the use 
of notes so redeemed to meet deficiencies in the current revenues. The 
act provides for the ultimate retirement of all the Treasury notes Issued 
in payment for silver bullion under the Sherman Act. As fast as that 
bullion is coined into silver dollars Treasury notes are to be retired and 
replaced with an equal amount of silver certificates. 

The measure authorizes the issue of gold certificates in exchange for 
deposits of gold coin, the same as at present, but suspends that authority 
whenever and so long as the gold in the redemption fund is below 
$100,000,000, and gives to the Secretary the option to suspend the issue 
of such certificates whenever the silver certificates and United States 
notes in the general fuud of the Treasury exceed $60,000,000. 

Silver Certificates. 

The bill provides for a larger issue of silver certificates, by declaring 
that hereafter silver certificates shall be issued only in denominations 
of $10 and under, except as to 10 per cent of the total volume. Room is 
made for this larger use of silver certificates in the way of small bills 
by another provision which makes it necessary as fast as the present 
silver certificates of high denominations are broken up into small denomi- 
nations, to replace them with notes of denominations of $10 and upward. 
Further room is made for the circulation of small silver certificates by a 
clause which permits national banks to have only one-third of their 
capital in denomination under $10. 

Coining Silver. 

One clause of the bill which the public will greatly appreciate is the 
right that it gives to the Secretary to coin any of the 1890 bullion Into 
subsidiary silver coins up to a limit of $100,000,000. There has for years 
been a scarcity of subsidiary silver during periods of active retail trade, 
but this provision will give the Treasury ample opportunity to supply 
all the subsidiary silver that is needed. Another provision that the 
public will greatly appreciate is the authority given to the Secretary 
to recoin worn and uncurrent subsidiary silver now in the Treasury or 
hereafter received. The bill makes a continuing appropriation for paying 
the difference between the face value of such coin and the amount the 
same will produce in the new coin. 

Refunding- the Debt. 

A distinct feature of the bill is in reference to refunding the 3 per 
cent Spanish war loan, the 4 per cent bonds maturing in 1907, and the 5 
per cent bonds maturing in 1904, a total of $839,000,000, into new 2 per 
cent bonds. These new 2 per cent bonds will not be offered for sale, 
but will only be issued in exchange for an equal amount, face value, of 
old bonds. The holders of old bonds will receive a premium in such to 
compensate them in a measure for the sacrifice of interest which they 
make. That cash premium will be computed ou a basis of the present 
worth of the old bonds at 2*4 per cent, and will be on April 1, the date 
that the new 2 per cent bonds will bear $105.6S51 for the tnrees, $111.6705 
for the fours, and $110.0751 for each $100 of the fives. This exchange 
will save the Government, after deducting the premium paid, nearly 
$23,000,000, if all the holders of the old bonds exchange them for the new 
ones. National banks that take out circulation based on the new bonds 
are to be taxed only one-half of 1 per cent on the average amount of 
circulation outstanding, while those who have circulation based on a 
deposit of old bonds will be taxed, as at present, 1 per cent. 

• Other National-Bank Provisions. 

There are some other changes in the national-banking act. The law 
permits national banks with $25,000 capital to be organized in places 
of 3,000 inhabitants or less, whereas heretofore the minimum capital has 
been $50,000. It also permits banks to issue circulation on all classes of 
bonds deposited up to the par value of the bonds, instead of 90 per cent 
of their face, as heretofore. "This ou.aht to make an immediate increase 
in national-bank circulation of something like $24,000,000. as the amount 
of bonds now deposited to secure circulation is- about $242,000,000. If 
the price of the new twos is not forced so high in the market that there 
is no profit left to national banks in taking out circulation, we may also 
look for a material increase in national-bank circulation based on addi- 
tional deposits of bonds. 

National banks are permitted under the law to issue circulation up to 
an amount equal to their capital. The total capital or all national banks 
is $616,000,000. The total circulation outstanding is $253,000,000. There 
is, therefore, a possibility of an increase in circulation of $863,000,000. 
although the price of the new 2 per cent bonds, as already foreshad- 
owed bv market ouotations in advance of their issue, promises to be so 
high that the profit to the banks in taking out circulation will not be 
enough to make the increase anything like such a possible total. 



RECIPROCITY. 

The Republic-ill National Convention of 1S9G condemned the 
!)<meeraioe iepva'l < i ishe Keefljprfl&it} yneismes of l»9.J-9:}, as a 
"national calamity." It demanded "their renewal and exten- 
sion on such terms as will equalize our trade with other coun- 
tries, remove the restrictions which now obstruct the sale of 
American products in the ports of other countries, and secure 
enlarged markets for the rjroducts of our farms, forests, and 
factories. 

"Protection and reciprocity are twin measures of Republican 
policy and go hand in hand. Democratic rule has recklessly 
struck clown both, and both must be re-established." 

Upon the platform which included these declarations the Re- 
publicans elected a majority of the Representatives in Congress, 
and William MeKinley to be the President of the United States. 

Promptly, at its first session the Republican Congress passed 
a bill restoring protection to our greatly depressed industries, 
and providing for special reciprocity Conventions with foreign 
countries by which we might "gain open markets for us in re- 
turn for our open markets to others;" because "Reciprocity 
Muilds up toreign trade and hnds an outlet tor our surplus" 
as the platform declared. 

The third section of the Diugley Tariff authorized the Presi- 
dent to make certain specific reductions of duty on a few spec- 
ially named articles in favor of the producing countries, in 
return for reciprocal and equivalent concessions made in favor 
of the products of the United States. 

The fourth section authorized international Conventions cov- 
ering all branches of trade, with a view to the increase of our 
export trade, giving concessions nut exGeedlug" 20 l>er cent of 
the United States duties as fixed by the Diugley Tariff in ex- 
change for equally important concessions in favor of United 
States rjroducts exported. 

Soon after the passage of that act President MeKinley pro- 
ceeded to give it effect and appointed a special commission for 
that purpose. Although its negotiations were delayed by the 
Spanish War they were afterwards vigorously prosecuted and 
up to the 3C)th day of June, 1900, the following results have been 
obtained. 

Reciprocity Treaties Under President MeKinley. 

Under the third section of the Tariff Act an agreement was 
made with France by which reduction of French duties was 
secured on various products of the United States exported to 
France, including fruits, canned nrcats, prepared pork meats, 
lard, etc. Under this arrangement our exports of these few ar- 
ticles to France increased in the first 22 months from $5,137,000 
to $8,958,000 — or about 75 per cent. 

An agreement with Portugal has also been made and pro- 
claimed securing advantages and reduced rates on certain 
United States products exported to that country. This went 
into effect in June, 1900, and like beneficial results* are expected. 

Another agreement has been made with Italy securing advant- 
ages for our exports to that country. This is now awaiting 
ratification by the Italian Parliament. 

Under the fourth section of the Tariff Act the most important 
Commercial Convention yet negotiated is that with France. While 
other nations enjoyed her minimum tariff, the United States 
exports were burdened with the maximum tariff. This practi- 
cally barred out American manufactures, and embarrassed other 
of our exports. This treaty secures for our farmers and manu- 
facturers the lowest tariff rates given any nation. It awaits 
ratification by the Senate, and if ratified is expected to increase 
our exports to France by from 20 to 30 millions annually. 

Commercial Conventions have also been signed, and await rati- 
fication, wn'th the following British Colonies: Bermuda, Jamaica, 
Barbados, Turks and Caicos Islands, and British Guiana. Also 
with the Danish Island of St. Croix. Also with Nicaragua, and 
with the Dominican Republic. 

All these Conventions widen existing markets, or open new 
trade; and secure important reductions of duties on the products 
of our farms, and forests and mines, exported to the various 
countries. Flour, grain, fruit and wines of California, corn and 

187 



188 RURAL FREE DELIVERY OP MAIL. 

corn meal, manufactured tobacco, cotton-seed oil and oil cake, 
fertilizers, lumber from pine forests of the South, and North, the 
manufactured products of the woods of Maine, and various 
manufactures secure benefits under their provisions. 

Negotiations of great importance with other countries, tend- 
ing to the enlargement of still other markets, and to the in- 
crease of our export trade on the Pacific, are pending. 



THE POST-OFFICE DEPARTMENT. 

Rural Free Delivery of Mail — The Offspring of the McKinley 
Administration— -Some Facts "Which Will Interest the Farm- 
ers and All Those Desiring Their Welfare. 

Sural free delivery of mail is the offspring of the McKinley 
Administration of the Post-Office Department. Its development 
from the insignificant beginning of 44 routes and an appropria- 
tion of $40,000 for the fiscal year which closed in 1897 to its 
present magnificent proportions, with the rural routes numbered 
by the thousands and an appropriation of $1,750,000 voted for 
its further extension during the present fiscal year, has all been 
brought about by the McKinley Administration. 

A movement to broaden the free delivery of the mails was 
started by Postmaster-General Wanamaker, under the Repub- 
lican Administration of General Harrison. It took the form of 
village free delivery, and was more an extension of city de- 
livery to smaller communities than a free delivery to farmers. 
But, limited as was its scope and successful though it was in 
increasing postal receipts and postal facilities, it encountered 
Democratic opposition; and when Mr. Cleveland came in, his 
Postmaster-General, fearing its effect in popularizing Republican 
principles and disseminating Republican literature, ordered it 
dropped. 

It was a Republican Administration that conceived and exe- 
cuted the idea of brightening the home of the fanner, educating 
his children, increasing the value of his land, compelling the im- 
provement of the roads, and bringing him news of the markets 
and of the weather, so as to secure him a better price for his 
crops, by delivering his daily mail to him on his farm. Every 
Democratic House of Representatives since the idea was first 
broached of carrying the mails into the rural districts has de- 
clared against it. The Forty-third Congress, with a Democrat 
from North Carolina as chairman of the Committee on Post- 
Offices and Post-Roads, proclaimed the plan impossible and 
turned it down. Postmaster-General Bissell, Postmaster-General 
Wilson, and First Assistant Postmaster-General Jones, in the 
Cleveland Administration, all took up the cry of extravagance 
and impossibility of execution. Consequently, little or nothing 
was done to give the farmers access to the mails till Cleveland 
went out of office. 

When First Assistant Postmaster-General Perry S. Heath took 
up the rural service under the direction of the President and 
the Postmaster-General, in March, 1897, it was languishing to 
the point of extinguishment, and in a few months more would 
have been starved to death, like Mr. Wanamaker's village de- 
livery. The official reports of the Post-Office Department record 
that it was with surprise that President McKinley and those 
to whom he entrusted the administration of postal affairs 
learned that there was such a thing as an experimental rural 
free-delivery mail service in progress. 

They at once grasped its possibilities and advocated its imme- 
diate development, and a Republican Congress generously sec- 
onded their efforts. Under this vivifying touch it has grown 
until there is now not a State in the Union that has not felt the 
civilizing and educational influence of rural free mail delivery, 
and not one that does not desire a further expansion of the serv- 
ice. On the 1st of June, 1900, there were 1,200 rural services 
in actual operation and 2,000 applications for an extension of the 
system in process of establishment by special agents detailed for 
that purpose. 

The appropriations for the rural free-delivery service have been 
increased from $50,000 in the fiscal year 1897-98 to $150,000 in 



WORK OP THE POST OFFICE DEPARTMENT. 189 

1898-99, then to $450,000 in 1899-1900, and lastly to $1,750,000 for 
the present fiscal year, 1900-1901. 

Three years' experience has shown that in well-selected rural 
districts the mails can be distributed to the domiciles of the ad- 
dressees or in boxes placed within reasonable distance of the 
farmers' home, at some crossroad or other convenient spot, at a 
tost per piece not exceeding that of the free delivery in many 
of the cities of the United States. In the vast majority of com- 
munities where it has been tested the rural free-delivery service 
has obtained so strong- a hold that public sentiment would not 
permit its discontinuance. It has been a revolution, and revo- 
lutions do not move backward. 

It costs very little more than the old colonial style of postal 
service which it supersedes, and it invariably brings a large and 
compensating increase in the amount of postal receipts turned 
into the Treasury. But even if it does cost more than the obso- 
lete old plan, are not the farmers entitled to some of the bene- 
fits of the Government which they help so liberally to support 
by their taxation? The country can well afford to continue 
and extend a system which makes better citizens and happier 
homes and contributes largely to the mental, moral, and material 
advancement of all the people. 

Rural free delivery of mail has come to stay, and tin* Repub- 
lican Administration which brought it into being will stay 
with it. 

Other Important Work of the Department. 

Besides the development of the rural free delivery service, the 
Post-Office Department under the present Administration has 
shown other important results. One of the most striking proofs 
of the increased prosperity and more active business of the peo- 
ple is presented in the exhibit of postal receipts before and since 
the incoming of the present Administration. The following 
table gives the figures of receipts for the last eight years: 

1893 $75,890,933.16 

1894 75,080,479.04 

1895 7G,9S3,128.19 

189G 82,499,208.40 

1897 82,665,402.73 

1898 89,012,618.55 

1899 95,021,384.17 

1900 (estimated) 100,250,000.00 

As will be seen, the volume of receipts was nearly stationary 
under the preceding Administration and has increased about 
$20,000,000 under the present Administration. As a result, the 
postal deficit, which was $11,411,779.65 in 1897, has been reduced 
to about $5,000,000. One of the first acts of Postmaster-General 
Smith was to revise the contract for stamped envelopes, by which 
he effected a saving to the Government and people of $1,400,000. 

The postal service has been extended to the new possessions, 
and has given the inhabitants not only greatly improved mail 
facilities but a cheap money-order serviee for the safe trans- 
mission of money, which they never before possessed. The num- 
ber of free-delivery post offices has been increased 25 per cent — ■ 
a larger increase than ever before during the same period. 

A system somewhat resembling the postal savings banks of 
other countries has been established by authorizing the payment 
of money orders at the office of issue, thus affording a safe de- 
pository for money and encouraging saving. The advantages of 
the registry system have been greatly extended and made more 
available through the medium of the new system of registration 
at homes by letter carriers in cities and by rural carriers on their 
routes. 



We have passed from a bond issuing to a, oond paying na- 
tion, from a nation of borrowers to a nation of lenders, from 
a deficiency in revenues to a surplus, from fear to confidence, 
from enforced idleness to profitable employment. — President 
McKinley to Notification Committee, July 12, 1900. 



PENSIONS AND PENSION LAWS. 

The Record of the Republican and Democratic Parties Con- 
trasted. 

The Pension Bureau, under Republican Administrations, is lib- 
eral and generous to the brave defenders of onr country. 

The Republican party is the devoted and consistent friend of 
the soldier and his dependents. 

It has enacted beneficent and liberal pension laws. The pres- 
ent system of pensions, which has been built up under Repub- 
lican Administrations, is the best in the world, and embraces 
within its provisions not only the soldier or sailor who contracted 
his disabilities in the service, but grants relief to nearly 500,000 
survivors of the civil war, who are now incapacitated for earn- 
ing a support from causes which have arisen since the war. 

The Democratic party has been the relentless enemy of the 
ex-Union soldier and has stubbornly fought every effort '.to enact 
liberal pension laws. 

A careful examination of the Congressional Record on fourteen 
important pension measures introduced since the civil war, and 
voted on by Congress, reveals the following total votes: 

Democrats for the bills 417 

Democrats against the bills 643 

Republicans for the bills 1,068 

Republicans against the bills None 

A Democratic President, G rover Cleveland, during his two 
Administrations vetoed 524 pension bills. Presidents Lincoln, 
Hayes, Garfield, Arthur, Harrison and MeKinley never refused 
their signature to a single pension bill. 

President Grant withheld his signature only five times during 
his administration. 

The last Democratic Administration constituted a "Board of 
Revision in the Pension Bureau to revise the allowance of pen- 
sions under President Harrison's administration. During the 
two years of the existence of this Board, 8,694 pensioners were 
dropped from the rolls, and 2o,702 pensions were reduced. 

A large portion of these pensioners have been restored to the 
rolls tinder the Administration of President MeKinley. 

Since 1866 the total payments for army and navy pensions have 
been $2,389,910,974, and the magnitude of the pension roll, both 
as to the number of beneficiaries and the amount paid, has ex- 
cited the wonder and admiration of the world. 

The Government is generous in many v\ays in providing for the 
wants of the soldier. 

First. The most liberal pension system that ':he world ever 
saw for those who were wounded or otherwise disabled in the 
service, and their widows and ch'ldrt n and dependent parents and 
sisters and brothers. 

Second. If the soldier lost a limb in the service, or, as the re- 
sult of his service, in line of duty, the law provides that he shall 
be furnished, in addition to his pension, an artificial limb free of 
cost (every three years), or commutation therefor, and trans- 
portatiqn from his home ,to such place as he .shall select the ar- 
tificial limb and return. 

Third. A pension for all who served ninety days and who 
are now incapacitated for earning a support, and suitable pro- 
vision for the widows and children and dependent .parents. 

Fourth. Preference in appointments to places of trust and 
profit, and preferences for retention in all civil-service x^ositions. 

Fifth. National Homes, located at convenient and healthy 
points in different parts of the country, where all the comforts of 
a home are provided free of all expense, including comfortable 
quarters, clothing, medical attendance, free library and amuse- 
ments of different kinds, the Government providing free trans- 
portation to the Homes, and continuing payments of pensions 
while a member of the Home, and increasing same as disabilities 
increase. 

190 



PENSIONS AND PENSION LAWS. 191 

Sixth. State Homes (29 in number) kept up by the different 
States, and similar in their purpose to the National Homes, the 
sum of $100 being- annually paid by the General Government to 
such Homes for each inmate. Many of these State Homes also 
provide for the wives and families of the inmates, so that they 
need not be separated while they are members of the Home. 

Seventh. Soldiers' orphan schools, established by the different 
States, providing- for the maintenance and education of soldiers' 
orphans until they attain the age of 16 years. 

Eighth. There has been, in addition to oil this, granted for va- 
rious military services, as provided by law, over 70,000,000 acres 
of land, known as bounty land. 

Act of June 27, 1890. 
This beneficent law was passed by a Republican Congress, was 
approved by a Eepublican President, and has been so liberally 
administered 1 by two Eepublican Administrations that there are 
now 420,912 soldiers and sailors, and 130,266 widows receiving 
its benefits who would not be entitled under the general pen- 
sion laws. During the fiscal year ended June 30, 1S99, the sum 
of $64,321,460.77 was paid to the pensioners under this act, being 
nearly one-half of the entire amount disbursed on account of 
pensions. The total amount paid to pensioners under the act 
of 1890 since its enactment is more than $500,000,000. 

Act of May 9, 1900. 

While this large number of benficiaries take pension under 
the act of 1890, it was found that the terms of the law debarred 
many meritorious claimants from sharing in its benefits, and 
therefore an act was passed May 9, 1900, popularly known as 
the "Grand Army bill," amending the act of June 27, 1S90, so as 
to bring within its provisions nil meritorious claimants requiring 
some measure of relief from the Government on account of dis- 
ability or dependency. 

It is expected that under the operations of this act many thou- 
sands of names will' be added t<> the pension rolls, and the Com- 
missioner of Pensions is now actively engaged in making prep- 
arations looking to the prompt settlement o!' all claims that may 
be filed under its provisions. 

Section 3 of this act liberalizes the provisions for pensioning- 
soldiers' widows. The law of June 27, 1890, provided that the 
widow must be "without other means of support than her daily 
labor" to give her a pensionable status. The Secretary of the 
Interior held that unless the widow's other means of support ex- 
ceeded what her pension would be ($96) she might be deemed 
to be without other means of support than her daily labor. The 
act of May 9, 1900, section 3, provides that if the soldier's widow's 
net income does not exceed $250, she shall be pensionable. This 
act will be the means of placing upon the pension rolls, accord- 
ing to the estimates of Bureau officials, from 35,000 to ±0,000 sol- 
diers' widows — a generous increase of about $3,.">00.000 annually 
to these most deserving representatives of the nation's defend- 
ers. 

It is a well-known fact that President McKinley in his message 
to Congress recommended this legislation; that it was recom- 
mended by the Secretary of the Interior and the Commissioner 
of Pensions. 

Act of April 18, 1900. 

This is an act passed by Congress repealing the provisions of 
section 4716, Revised Statutes, so far as the same may be appli- 
cable to the claims for pension of dependent parents of soldiers, 
sailors, and marines who served in the army or navy during the 
war with, Spain. 

This law gives title to pension in cases where its beneficiaries 
aided and abetted the late" rebellion and who furnished sons for 
the army or navy during the war with Sj)ain who died or may 
hereafter die as a result of said service. 

Act of April 23, 1900. 

This law, which was enacted by the present Congress, makes 
provision for granting" an increase of pension to certain survivors 



192 WORK OF THE TENSION OFFICE. 

of the war with Mexico who may become totally disabled and 
destitute. 

This legislation will reach a very meritorious class of pension- 
ers who have heretofore been debarred from applying for in- 
crease, notwithstanding that they may have become totally dis- 
abled for the performance of any manual labor. 

Three Years of Hard "Work. 
The number of unsettled claims on file in the Pension Bureau 
June 30, 1897, was 578,099; the number on file June 30, 1898, was 
035,059, and the number remaining on hand June 30, 1899, was 
477,239. It will be remembered that with the advent of this Ad- 
ministration many thousands of new claims of all kinds were 
filed' in the Pension Bureau, the number of original claims filed 
during the years 1897, 1898 and 1899 alone aggregating 126,136. 
The total number of all applications received during the fiscal 
year of 1899 was 164,881, while for the fiscal year ended June 30, 
1898, the number was 218,489. 

Notwithstanding this avalanche of new claims, which was add- 
ed to the half million claims pending when Commissioner Evans 
assumed charge of the Bureau, the work of settling claims has 
been prosecuted with such diligence that at the end of the fiscal 
year of 1899 only 477,239 unsettled claims remained in the pend- 
ing files of the Bureau, and only 172,197 of these were original 
claims, the balance being claims for increase or additional allow- 
ance. 

The number of claims pending on June 1, 1900, was 434,613, and 
158,847 of these were original claims. 

In fact, the work of the Bureau is now so nearly current that 
original claims can be settled as fast as they are completed by 
the claimants furnishing the necessary evidence. 

This result has been accomplished notwithstanding the fact 
that about 20,000 additional claims were filed last year on ac- 
count of service in the war with Spain. 

During the years 1897, 1898 and 1899 nearly 140,000 original pen- 
sions were granted, while for the three years preceding 1897, 
viz., 1894, 1895 and 1896, only 118,644 of the same class were al- 
lowed. 

During the fiscal year ended June 30, 1900, 40,637 new pensions 
were allowed, and 4,352, who had been previously dropped, were 
restored to the rolls. 

On June 30, 1897, there were 976,014 pensioners on the rolls 
of the different agencies, while on June 30, 1899, the number was 
991,519, showing a net increase since 1897 of 15,505. 

The increase in the number of pensioners has grown steadily 
from year to year, the maximum number being in 1S98, viz., 
993,714. In 1894 the number was 969,544. 

Sin.ce the close of the fiscal year 1894 there have been dropped 
from the rolls on account of death, 185,572; other causes, re- 
marriage, etc., 70,000; total, 255,572; and yet the roll has con- 
tinued to increase each year until now it contains nearly 
1,000.000 names. 

And yet the roll has continued to increase each year until now 
it contains nearly 1,000,000 names. 

The amount paid for pensions during 1893, the last year of the 
Harrison Administration, was $156,806,537.94. 

During the following year (3894), which was the first year of 
the Democratic Administration, the amount paid for pensions 
dropped to $139,986,626.17, being a reduction in one year of $16,- 
819,911.87. 

During the fiscal year ended June 30, 1900, the Pension Bu- 
reau issued 105,567 certificates, and the payments for the fiscal 
year ended June 30, -1900, on account of pensions amounted to 
nearly $140,000,000. » 

The annual value of the pension roll as it stood on June 30, 
1899, was $131,619,961, and the average annual value of each 
pension was $132.74. The annual value of the roll is greater now 
than it ever was before. 

Since April 1, 1S97, over 16,000 names of pensioners, who had 
been previously dropped for various causes, have been restored 
to the rolls, and these persons are now receiving pensions 
amounting to $2,100,000 annually. 



WORK OF THE PENSION OFFICE. 193 

This work is still in progress, the Commissioner having direct- 
ed the restoration of 4,352 names during the fiscal year of 1900. 

In 1878 President Garfield predicted that the pension roll, 
which then aggregated $26,786,000, and embraced 232,137 pension- 
ers, was at its maximum, but it has been steadily growing, until 
now the number of pensioners is nearly a million, and the 
amount necessary to pay the same is in excess of $140,000,000 a 
year. 

Great Britain is a mighty nation in war and maintains a large 
standing army in time of peace. 

Its pension roll contains the names of 80,070 officers and enlist- 
ed men, and the amount paid to them annually is $3,022,237. 

Amount Paid for Pensions During the Year 1899. 

The pavments on account of pensions cliirinc: the rear endintr 
June 30, 1899, were $138,253,022. 

The total payments on account of pensions during President 
Grant's first term were $116,136,275; during his second term, 
$114,395,357; during President Hayes's term. $145,322,489. 

It will be noted that the payments for the one year (1899) were 
far in excess of the entire amount paid during the first or sec- 
ond Administrations of President Grant, and aJmost as much as 
was paid during the entire four years of President Hayes's Ad- 
ministration. 

In the matter of allowances of original pensions it may be 
stated that during the first year of President McKinley's Admin- 
istration there were allowed 52,648 original peusions. During the 
first year of President Cleveland's second Administration there 
were allowed only 39.0s r >. 

During the entire four years of President Grant's second Ad- 
ministration there were allowed only 42.917 original pensions. 

Rates of Pension. 

The rates of pension paid under the act of .June 2 7, 1890, range 
from $6 per month (minimum) to $12 per month (maximum). 

Total disability for manual labor under the general law is rated 
at $30 per month. The same degree of disability entitles to $12 
per month under the act of June 27, 1S90. 

Under the general law (disability of service origin) 46,533 sol- 
diers receive $12 per month, 21,970 receive $24 per month, and 
15.498 receive $30 per month. 

Under the act of June 2 7. 1890 (disability not of service origin) 
160,406 soldiers receive the maximum rate ($12 per month), 26,- 
540 receive $10 per month. 12S.143 receive SS per month, and 105,- 
7^7 receive $6 per month. 

This shows that there are more persons pensioned at the max- 
imum rate than at any other rate under the act of 1890, and that 
the number receiving the rate for total disability under that tct 
is more than ten times the number receiving pension for total 
disability of service origin. These figures show that the ratings 
of the Pension Bureau in claims allowed under the act of 1890 
are very liberal indeed. 



The North and the South no longer divide on the old lines, 
but upon principles and policies; and in this fact surely every 
lover of the country can find cause for true felicitation. — Pres- 
ident-elect McKinley's inaugural address. 

Resuscitation will not be promoted by recrimination. The 
distrust of the present will not be relieved by a distrust of 
the future. A patriot makes a better citizen than a pessimist. 
—President McKinley before Manufacturers' Club, Philadel- 
phia, June 2, 1897. 

We are a united people — united in interest, sentiment, pur- 
pose, and love of country as we have never been before. Sec- 
tionalism has disappeared. Old prejudices are but a faded 
memory. The orator of hate, like the orator of despair, has 
no hearing in any section of our country. — President McKin- 
ley at Cedar Falls. Oct. 16. 1899, 



A DOOR TO THE MARKET OF THE 
ORIENT. 

Commercial Advantages of the Control of the Hawaiian and 
Philippine Islands. 

What will be the effect upon our commerce of the acquisition 
of the Philippines particularly and of the island possessions in 
the Pacific in general? That is the practical question which 
everybody is asking- and which it is the purpose of this article 
to answer. 

A Source of Supply for Tropical Products Required. 

First. They can supply a large proportion of the $350,000,000 
worth of tropical and subtropical products which this country 
imports annually and thus the money be expended under the 
American flag and for the benefit both of the people of the 
islands and those of our own citizens having investments in the 
islands. 

A Growing Market for Our Merchandise. 

Second. They will supply an immediate market for from $30,- 
000,000 to $50,000,000 annually and twice this sum later; the total 
imports of the Philippines in 1899, according to the official re- 
ports of the War Department, being $20,255,537, while our own 
exports to the Hawaiian Islands in the fiscal year just ended 
were $13,509,148, indicating that the total imports of those islands 
now exceed $15,000,000 and thus making the present total imports 
of the Philippine and Hawaiian Islands more than $35,000,000. 
The fact that our own exports to the Hawaiian Islands have 
grown from $5,907,155 in 1898 to $13,509,148 in 1900 indicates the 
growth in the importations which may also be expected in the 
Philipiunes when a permanent and liberal form of government 
shall have been established there and the consuming power in- 
creased through a development of the producing and exporting 
capacity of the islands. It is fair, therefore, to assume that the 
market which these islands will afford will soon reach $50,000,000 
annually, and may be doubled as their producing capacity devel- 
opes. 

An Open Door to the Commerce of the Orient. 

Third. By far the most important feature of these island ac- 
quisitions in the Pacific is their prospective effect upon our trade 
with the countries commercially adjacent to them and especially 
to the Philippines. The imports of the countries commercially 
adjacent to the Philippines amount to about $1,200,000,000 an- 
nually, or practically $100,000,000 per month, and nearly all of 
these importations are of the classes of articles for which the 
people of the United States are now attempting to find a mar- 
ket. Grouped around Manila as a i>oint of distribution lies the 
most densely populated part of the world. More than 800,000,- 
000 of people form the population of Japan, Asiatic Russia, China, 
French Cochin China, Si am, British India, Australasia, the Dutch 
East Indies, etc., all of which are nearer to Manila as a point of 
distribution than any other great commercial center, while such 
great trade centers as Shanghai, Canton and others are practi- 
cally as near to Manila as Havana is to the city of New York. 
The commerce of this section, of which Manila may be made the 
great commercial center, now amounts to more tnan $2,000,000,- 
000 per annum, and its annual purchases to about $100,000,000 
per month. Practically all of this vast sum which it sends 1o 
other parts of the w r orld is expended for the class of goods For 
which people of the United States are now seeking - a market. 
Cotton and cotton goods, breadstuff's, provisions, dairy products, 
manufactures of iron and steel and wood, the products of the 
farm and factory are demanded by the people of that part of the 
world. 

American Goods Popular in the East. 

In most cases the apparent disposition of these countries is to 
purchase from the people of the United States rather than from 
any other section or people. China, which in 1880 took onl 
per cent of her imports from the Tinted Slates, in isvr.) look s. I 
jut cent from this country. Japan, which in 1893 took only 0.S 

194 



TDTR MARKETS OF THE ORIENT. 



195 



per cent of her imports* in 1899 took from Ibis country J.7.3 per 
cent. Our exports to China, which in the fiscal year J c;, .)."> were 
hut $3.'.Min, i:>;. wen- in l'.XM) $15,625,260. Our exports to Japan, 
which in 1893 were $3, 195,494, were in 1900 $29,087,642. To Brit- 
ish Australasia our exports, which in 1894 were $8,131,939, were 
in 1900 $26,725,702. To the Hawaiian Islands our exports in L893 
were $2,827,663, while those of the fiscal year 1000 are $13,509,1 is. 
To the Philippines our exports in 1897 were less than $100,000. 
while those of the fiscal year 1900 are $2, 640,449. Talcing Asia as 
a whole, our exports, which in 1893 were but $10.222, 354, were in 
1900 $64,913,984, or four times those of 1893; while to Oceania our 
exports, which in 1893 were $11,199,477. in 1900 are $43,990,927. 
Thus our exportations To Asia and Oceania, which in 1S93 were 
$27,421,S31, in 1900 are $108^304,911. or four times those of seven 
years ago. 

The Markets of the Orient. 

The table which follows shows the imports and exports, at the 
lates available date, of the Orient, and the share of the Onited 
Slates therein: It is compiled by the Bureau of Statistics of tin* 
Treasury Department from official records: 



British East Indies 
British Australasia 

China 

Japan 

.Straits Settlcmente 
Dutch East Indies. 

Russia, Asiatic 

Slam 

Philippine Island^. 
Hawaiian Islands. 

Mauritius 

Persia 

Ceylon 

Hongkong* 

French East Indies 
Korea 



Total Asia and < >reani 




I m ports 



Dollars. 

221^52^05 2.0 

277,879,000 & * 

193,266,000 8.* 

110,200,000 17.8 

109,955,000 

66,458^000 1.7 

21,579,000 .7 

19,884,000 1 

20.300.000 <;.() 

I.") .2o< MX Hi Ma 

15,010,000 1 
25.470,000 
20,722.000 

20,000,(KKI 80.0 

791.000 S.7 

.X.0SWKMI 



1,145^09,000 



11.0 



Rapid Growth in our Sales to Asia and Oceanica. 

Thai the United Slates is gaining rapidh in the share which 
she is able to supply in the enormous imports of the countries 
and islands in question is shown by the following' table, giving 
1 he exports from the United States to each of the grand divi- 
sions of the world from 1893 to 1900. It will be seen that our ex- 
ports to Asia and Oceania have grown during that period from 
$27,421,831 to $108,304,911, an increase of 300 per cent, while our 
total exports were increasing- but 64 per cent during- the same 
period. 



l-'isi-al 


Exports. 


years 

ending 

June 30— 


Europe. 


North 
America. 


South 
.\ niern-a. 


Asia and 
t k-eanica. 


Africa and 

other 
rountries. 


Total. 




L8W 

1895 

1896 

1897 

1898 

1898 

1900 


Dollars. 
061,076,910 

700,870,822 
027.927.1 i92 
078.048.758 
813^85,644 

i:t78.800.24"i 

98ti.002.09: 1 > 

1.040,107.812 


Dollars. 

119.78S.KM) 

119,098.212 

108.575.594 

116,567,496 

124.958.4fil 

189.ti27.841 

157.981,707 

187,299,818 


Dollars. 
82.< 589.077 
38.212,310 

88,525.985 
30,297.071 
33,708.040 
88.821.701 

8o,H5'.i.!'i2 
38,945.721 


Dollars. 
27.421.881 

82.7Sii.948 
80,484,288 

42.S27.25S 
61,927.078 
00.710,813 
78.2:8-5,170 
108,304.911 


Dollars. 

5.838.087 
5,5 < 7.28-5 
7.074,0-50 
18.870.700 
10.953.127 
17.515,730 
18,594,424 
19,409,109 


Dollars. 

847.0H5.19i 
892.1 40,572 

807,588.1 li5 
882.000.9.8* 
1,0.50.998.550 
1.281.482,880 
1.227,028,802 
1,394,180.871 


Percen* of 

increase, 
1890-1900 


80.8 


80.1 


If 1.2 


300.1 


28(i.2 


(14.4 



Our Exports to the Orient in 1899 Compared with 1890. 

The following table shows the exportation 01 leading articles 
from the United States to China, Japan, Asiatic Itussia, Austral- 
asia, Hawaii and the Philippine Islands in the fiscal years 1890 
and 1899, respectively: 



Articles. 



Iron and steel and manufactures of 

Cotton cloth 

Mineral oils 

Breadstuffs 

Cotton, unmanufactured 

Tobacco, manufactures of 

Wood and manufactures of 

Chemicals 

Leather and manufactures of. 

Paper and manufactures of 

Provisions 

Carriages and cars 

Agricultural implements 

Fertilizers 

Fruits and vegetables 



1890 



Dollars. 

2,928,971 

1,532,181 

7,246,111 

3,521,936 

85,211 

2,017,508 

2,117,058 

1,070,462 

732,260 

128,277 

518,190 

424,952 

575,254 

114,988 

441,430 



Dollars. 

13,210,552 

10,265,202 

7,570,868 

7,491,021 

5,909,228 

5,688,048 

2,817,006 

1,802,238 

1,249,660 

1,542,238 

966,775 

975,546 

824,342 

736,531 

683,759 



It is always safe to array yourself on the side of your coun- 
try; it is always to stand against lawlessness and repudia- 
tion.— Ma j. McKinley at Canton, Sept. 23, 1896. 

We are not a nation of classes, but of sturdy, free, inde- 
pendent and honorable people, despising the demagogue and 
never capitulating to dishonor. — McKinley's letter of accep- 
tance, 1896. 

The people have no patience with those who would violate 
the plighted faith of the nation and stamp its obligations 
with dishonor. — Hon. Wm. McKinley to delegation of farmers, 
at Canton, September 22, 1896. 

Nothing should ever tempt us — nothing ever will tempt us 
— to scale down the sacred debt of the nation through a legal 
technicality. — President McKinley before National Association 
of Manufacturers, New York, Jan. 27, 1898. 

The American people have never failed, no matter how great 
the emergency, no matter how grave the crisis, to measure 
up to the highest responsibilities of honor and duty. — Presi- 
dent McKinley at Ames, la., Oct. 11, 1898. 

The people were deceived once, but are not likely to be be- 
guiled into a similar mistake again; they surely will not fol- 
low the business advice of political alarmists in the future. — 
Maj. McKinley at Niles, O., August 22, 1891. 

Let us keep steady heads and steady hearts. The country 
is not going backward, but forward. American energy has 
not been destroyed by the storms of the past. — President Mc- 
Kinley before Manufacturers' Club, Philadelphia, June 2, 
1897. 

In this contest all the banner we want is the American flag; 
it represent all our aims, all our plans, all our purposes. * * 
It was never degraded or deserted and will not be now when 
more patriotic men are guarding it than ever before in our 
history. — Hon. Wm. McKinley to delegation of farmers, at 
Canton, September 22, 1896. 

My countrymen, the currents of destiny flow through the 
hearts of the people. Who will check them? Who will di- 
vert them? Who will stop them? And the movements of 
men, planned and designed by the Master of men, will never 
be interrupted by the American people. — President McKinley 
at Chicago, Oct. 18, 1898. 

196 



OPERATIONS OF THE DINGLEY TARIFF. 

It Has More Than Met the Ordinary Requirements of the Gov- 
ernment—its Earnings Contrasted With Those of the Wilson 
Law. 

The Dingley law has move than met the current peace obliga- 
tions oJ' the Government. A table which follows is intended to 
show how completely that law performed the duty for which 
it was created, viz., to supply the runnrag' expenses of the (!o\- 
ernment in times of peace. It shows the total receipts from the 
law as originally enacted and the receipts from the War Revenue 
Act, separately; also the total expenditures and the share prop- 
erly charged to war expenditures. By this process it is practi- 
cable to determine whether the Dingley law met the expectations 
of its framers in supplying the fluids necessary for the ordinary 
peace expenditures of the Government. The summarization at 
the end of the table shows that the excess of receipts, exclusive 
of war revenue and Pacific railroad settlements, over ex- 
penditures, exclusive of war account, amounted to $57,- 
935,062 from August 1, 1897, to July 1, 1900. The 
bill, it will be remembered, became a law July 24, 
1897, but it is not practicable to obtain the receipts or expen- 
ditures for the remaining days of that month, hence the figures 
for receipts and expenditures are dated from August 1, the avail- 
able date nearest that upon which the act came into operation. 

The contrast between the efficiency of the Dingley Act and the 
inefficiency of the Wilson law is shown by the statement which 
follows this table. It shows the amount of deficiency under the 
Wilson Act and compares it with the surplus under the Dingley 
Act. The Wilson law operated during 35 months and by a curious 
coincidence the Dingley law on July 1, 1900, has also been in op- 
eration just that length of time, so that the comparison is ab- 
solutely fair as to the length of time covered. It will be seen 
that the Wilson law created a deficit, of $105,180,701 during the 
35 months of its operation, while the Dingley law created during' 
the same number of months a surplus of $57,935,062. The figures 
are official, having been supplied by the Treasury Department in 
answer to a specific inquiry upon this subject. 



Receipts and Expenditures During Operation of the Dingley 
Tariff Law, August 1, 1897, to July 1, 1900.— Comparison 
with Operation of the Wilson Law. 

EECEIPTS. 

CUSTOMS. 

Total customs receipts from August 1, 1897, to 

July 1, 1900 $572,594,702 

Receipts from duty on tea (War Revenue Act), June 

13, 1898, to July 1, 1900 (estimated) 12,500,000 

Total customs receipts exclusive of war revenues, 

August 1, 1897, to July 1, 1900 $560,094,702 

INTERNAL REVENUE. 

Total internal revenue receipts from August 1, 1897, 

to July 1, 1900 $720,869,359 

Internal revenue receipts under War Revenue Act, 
June 13, 1898, to July 1, 1900 209,000,000 



Total internal revenue receipts exclusive of War 

Revenue Act, August 1, 1897, to July 1, 1900... $511,869,359 

197 



198 OPERATIONS OF THE DINGLEY TARIFF. 

MISCELLANEOUS. 

Total miscellaneous receipts, August 1, 1897, to July 

h POO '. $157,779,479 

Total receipts from Pacific Railroads, August 1, 
1897, to July 1, 1900 80,709,452 

Total miscellaneous receipts, exclusive of Pacific 

Railroads, August 1, 1897, to July 1, 1900 $77,070,027 

RECAPITULATION OF RECEIPTS. 

Total customs receipts, exclusive of duty on tea, 

August 1, 1897, to July 1, 1900 $560,094,702 

Total internal revenue receipts, exclusive of war 

revemie, August 1, 1897, to July 1, 1900 511,869,359 

Total miscellaneous receipts, exclusive of Pacific 

EailroadS, August 1, 1897, to July 1, 1900 77,070.027 

Total ordinary receipts, exclusive of war revenue 
and Pacific Eailroad items August 1, lb97, to 
July 1, 1900 $1,149,034,088 

EXPENDITURES. 

Total net ordinary expenditures, August 1, 1897, to 

July 1, 1000 $1,486,099,026 

Estimated expenditures on account of war with 
Spain, including the Philippines, August 1, 1897, 
to July 1, 1900 395,000,000 

Total net ordinary expenditures, exclusive of war 

with Spain, August 1, 1897, to July 1, 1900 $1,091,099,026 

SUMMARY. 

Total receipts, exclusive of war revenue and Pa- 
cific Railroad settlements, August 1, 1897, to July 
1. 1&0D $1,149,034,088 

Total net ordinary expenditures, exclusive of war 

with Spain, August 1, 1897, to July 1, 1900 1,091,099,026 

Excess of receipts, exclusive of war revenue and 
Pacific Railroad settlements over expenditures, 
exclusive of war accounts, August 1, 1897, to 
July 1, 1900 $57,935,062 

Comparison of Operation of Wilson and Dingley Laws. 

Total receipts from customs, internal revenue and 
miscellaneous, during" existence of Wilson law 
(35 months) $950,763,897 

Total expenditures during existence of Wilson 

law 1,055,944,598 

Deficit under Wilson law $105,180,701 

Total ordinary receipts, exclusive of war revenue 
and Pacific Railroad settlements, under Dingley 
law, August 1, 1897, to July 1, 1900 (35 months).. $1,149,034,0SS 

Total ordinarj' expenditures, exclusive of war with 
Spain, including the Philippines, during same 
period 1,091,099,026 

Surplus under Dingley law . $57,935,062 



The job hunts the man, not the man the job. When that 
condition exists labor is always better rewarded. — President 
McKinley at Creston, la., Oct. 13, 1898. 

The man or Party that would seek to array labor against 
capital and capital against labor is the enemy of both. — Maj. 
McKinley at Canton, September 18, 1896. 



FIRST SESSION OF THE FIFTY-SIXTH 
CONGRESS. 

An Outline of the Work Performed — A Notable Record for the 
Republican Party and for the Country. 

A com prehensive review of what has been accomplished by the 56th Con- 
in its first session, the duration of which has been shorter than that of 
any preceding "long"' session of Congress since 1830, requires a sriance at the 
achievements of the last Congress which preceded it. both together covering 
the period since the beginning of the present National Administration, and 
also the keeping in mind of the fact that in the hist Congress only one branch 
was controlled by the Republican party, so that the success of legislation 
depended to a considerable extent upon the co-operation of at least some 
members of the opposition. 

Brief Review of the Pifty-fifth Congress. 

The members of all parties supported with virtual unanimity the decla- 
ration of war against Spain, the recognition of the independence of tl ••• 
people of Cuba, the appropriation of money to carry on the war, ami 
other measures for the National defence, and some members of the oppo- 
sition also supported the war revenue legislation, the ratification of the 
Treaty of Peace with .Spain, the annexation of Hawaii and a few other 
measures; but there could be no agreement on a financial measure, and 
the Republican House of Representatives was powerless to redeem in 
that Congress its pledge iu behalf of sound money. No further demon- 
stration of this fact was necessary after its rejection by a majority of 
nearly" fifty votes on January 31, 1898, of the Senate concurrent resolu- 
tion declaring in favor of the payment of the public debt, principal and 
interest, in silver coin. 

The LVth Congress, however, was able to redeem the pledges in the 
Republican National platform of 18p6 in regard to the revision of the 
tariff, the annexation of Hawaii and the acquirement of a naval base in 
the West Indies, and when it expired Cuba Was free from Spanish rule. 
A bill to establish a uniform system of bankruptcy had also been enacted 
into law: the homestead laws had bee* extended over Alaska and a crim- 
inal code provided for that Territory: an industrial commission had been 
created, to investigate subjects in which both labor and capital, as well 
as the business interests, were concerned; the Army had been tem- 
porarily reorganized and increased; all measures necessary for the prose- 
cution of the war had been promptly passed: an appropriation t<> pav 
Spain $20,000,000 for the surrender of sovereignty over the Philippine 
Archipelago had been made, and a number of other important acts had 
been written in the statujte book. 

Gold Standard Bill Passed. 

When the 56th Congress assembled last December, with the Repub- 
licans in control of both branches, it found some new and difficult prob- 
lems and many old ones awaiting it on the threshold, all clamoring 
attention ami demanding solution. Besides the unfulfilled 
the National party platform, there were all the perplexing questions of 
policy and government which had ariseu since that platform vs as made, 
in 1896. It was evident at the very outs* t that the majority conld expeci 
little co-operation or aid from the minority in dealh _ >blems am! 

conditions which the latter had helped to create. Fortunately for the 
country, such aid ami co-operation were not found indispi usable. 

The majority lost no time in its efforts to settle the financial question 
on a sound and enduring basis. Weeks before the regular standing com- 
mittees of the House of Representatives were appointed a financial bill 
was framed and brought forward, and H passed that body before the 
Christmas holiday recess. On March 14 it* was approved by the Preai- 
dent, nnd thus another solemn pledge of the Republican party was re- 
deemed. 

Legislation for New Possessions. 

The next great question to be dealt with was one which involved the 
policy of future legislation in regard to the terribly inquired from 
Spain, a subject which was iu terms referred to Congress by the Treaty 
or Paris. It was therefore of paramount im,portan< >• thai Congress should 
start right and act with deliberation. The Porto Rican Tariff bill, with 
provisions for the establishment of a civil government in the island, 
was the result. No measure ever brought forward in Congrefes, at least 
within a generation, was the object of such bitter and savage assault, 
or so much invective, misrepresentation and deliberate falsehood on the 
part of its opponents, as was the Porto Rican bill. It became law on 
April 12, went into operation on May 1. and its first fruits are already 
realized in increase of the island's revenues, a revival of business and 
industries and an increase of confidence, together with indications of 
growing contentment among the inhabitants of the island. In the first 
two months of its operations the exports to Porto Rico have more than 
doubled as compared with the corresponding months of last year, despite 
the assertion that Porto Rico is financially prostrate as a result of the 
storm of An-nst. 1899. Xoi the leasl of the blessings which have alreadj 
been realized is thai the hot and acrimonious debates over the doctrine of 
oprio vigore are forgotten or, at the worst, only remembered as an 
ugly dream. Au act was also passed to give Porto Rico the benefit of all 

190 



_ 



200 WORK OF THE 06TH CONGRESS. 

the customs revenue on imports from the island into the United States 
during the existence of the military government. 

Congress also passed and the President approved a law providing a 
form of government for the Territory of Hawaii which is to supersede 
the provisional government established on the ruins of the half despotic 
and wholly corrupt political organism known as the Kingdom of Hawaii. 
Preparations are now making to set the machinery of the new govern- 
ment in operation, and thus another pledge of the Republican National 
platform has been fully redeemed and the people of Hawaii are rejoicing 
in prosperity and their new and secure political relation. 

Free Homes Law Enacted. 

Another pledge of the Republican National platform has been redeemed 
by the enactment of the Free Homes law, which signifies a return to 
the original homestead policy, which was temporarily abandoned in a 
large measure ten years ago, at the instigation and through the efforts of 
William S. Holman and his Democratic party associates in Congress. By 
this law the homestead settlers on lands purchased from Indian tribes 
since 1889 are given the same privilege as are enjoyed by homestead 
settlers on other public lands bought from Indian tribes, or otherwise 
acquired by the United States prior to that time. 

Pension Legislation. 

Still another pledge of the Republican National platform was redeemed 
in part at the session which has just expired by the enactment of amend- 
ments to the pension laws, in the form of a measure advocated by dis- 
tinguished Union survivors of the Civil War and supported by the vet- 
erans of that great struggle with virtual unanimity. This enactment con- 
fers additional benefits on Union survivors of the war who may be suffer- 
ing from physical disabilities, and also on the dependent widows of 
Union veterans who have passed away. The Senate also passed a bill 
providing for a codification of the pension laws, and also one providing 
that in the adjudication of any pension claim the fact that the applicant 
was accepted and mustered into the service shall be taken and held as 
prima facie proof that he was of sound mind and body at the date of his 
enlistment. The House of Representatives has not yet taken action on 
these measures. 

An amended militia law was enacted and the annual appropriation for 
the militia was increased to $1,000,000. 

Government for Alaska. 

A law providing a civil code and judiciary system for Alaska was 
enacted, thus supplementing the legislation of the last Congress, which 
enacted a criminal code for that Territory. This was exceedingly neces- 
sary and important legislation, in view of the rapid increase of population 
and the new and rich discoveries and development of Alaska's mineral 
and other natural resources. 

The Clark and Roberts Cases. 

In its recent session Congress was compelled to deal with two cases 
involving the title of members to their seats, which were of an un- 
usual if not an unprecedented nature. One was the Montana case in 
the Senate. After a long and painstaking investigation the committee 
charged with that duty reported unanimously that the title of William 
A. Clark was defective on account of bribery and corruption, of which 
he had been the beneficiary, and submitted a resolution declaring that 
for that reason he was not entitled to the seat he then occupied. It was 
so late in the session before the resolution and report were submitted 
that Mr. Clark was enabled not only to forestall prompt action by re- 
signing his seat, but also to prevent further action in the case prior to 
the adjournment. 

The case in the House of Representatives was that of Mr. Roberts, 
of Utah, and that body took prompt and decisive action. A special com- 
mittee was appointed, which, after a patient and exhaustive investiga- 
tion, reported that Roberts had been convicted of bigamy and was living 
in polygamy at the time of his election as a Representative in Congress. 
The committee was unanimous in its findings of the facts, but its mem- 
bers differed as to the proper course to be pursued to keep Roberts out 
of the seat to which he had been elected, but was not entitled. The 
most direct course was adopted, that of not admitting him, instead of 
first admitting and next expelling him. 

Both Mr. Clark and Mr. Roberts had been elected as Democrats. 
When Congress assembled ten contested election cases were pending 
in the House of Representatives; when it adjourned all that had been 
reported by committees had been disposed of, three of them in favor of 
the contestants, who were Republicans, and the rest in favor of the 
sitting members, who were Democrats. Close observation of the conduct 
of these cases justifies the opinion that each of them was carefully and 
thoroughly investigated, the testimony impartially weighed and the de- 
cisions fair and iust— an opinion which would not always be sustained 
by the facts in regard to the investigation and decision of election con- 
tests by Congress. 

Treaties Ratified. 

In the course of the session the Senate devoted a good deal of atten- 
tion to various conventions and treaties submitted for its approval. One 
which was ratified was the convention between the United States, Great 
Britain and Germany which annuls the tripartite treaty in regard to 
Samoa. By this convention the United States acquired possession of the 
fertile island of Tutuila, with the safe and commodious harbor of Pago 
Pago, over which the Stars and Stripes now wave. Another convention 
between the same Powers which was ratified provides for the settle- 
ment of claims for losses alleged to have been caused by unwarranted 



WORK OF THE 56TH CONGRESS. 201 

nets of tiaval forces at the time of the Samoan disturbances. The con- 
vention signed at The Hague by the plenipotentiaries of the United 
States and other Powers for the pacific settlement of international con- 
troversies, etc., was also ratified, as was one signed at The Hague last 
year to adapt the principles of the Geneva Convention of 1864 to mari- 
time warfare. Treaties between the United States and Argentina and 
Peru, respectively, for the extradition of criminals were also ratified. It 
may be noted that the extradition laws of the United States are amended 
so as to cover such cases as that of Neely, who stands accused of the em- 
bezzlement of Cuban postal funds. 

The Appropriations. 

All of the general appropriation bills to provide for the support of the 
Government during the next fis#al year became laws. Some of these 
contained important legislative provisions which cannot here be de- 
scribed in detail. Among them were provisions relating to the importation 
of adulterated and dangerous articles; providing a check on foreign in- 
spection of American food products; reviving the grade of lieutenant- 
general in the Army and advancing the adjutant-general to the rank of 
major-general; providing for aid to a centennial exposition and celebra- 
tion of the Louisiana Purchase at St. Louis in 1893; confirming the agree- 
ment with the Cherokee and Creek Indian tribes for the allotment of their 
lands, etc. 

The total of the appropriations of the session are given in round num- 
bers by Chairmen Allison and Cannon of the Committees on Appropria- 
tions at $709,000,000. The appropriations of the special and first regular 
sessions of the LVth Congress amounted to $674,981,000, and of the 
second regular session to $893,231,000. Seven hundred million dollars is 
a very large sum, but it is to be noted and remembered that necessary 
expenditures on account of any war, either domestic or foreign, do not 
immediately cease when peace is restored, and that the acquisition of 
distant territory, peopled by millions of turbulent natives, who are strang- 
ers to American civilization and government, and the National obligations 
of the United States in Cuba require large expenditures which have not 
hitherto figured in the annual budget. 

Important Measures Advanced. 

A number of important measures passed one or the other branch of 
Congress at the session which ended to-day, and many more have passed 
the stage of committee consideration (which is often the most difficult 
one in legislation) and are now on the calendar of either the Senate or 
the House of Representatives. The former body passed a bill providing 
for a submarine cable between ihe Pacific Coast and Hawaii and the 
possessions of the United States in Oceania, which was reported by the 
House committee with amendments. This important and necessary meas- 
ure will become law at the next session. A bill to authorize an Oriental 
trade commission, which has been earnestly recommended by the Presi- 
dent in his last two annual messages, passed the Senate, was favorably 
reported in the House of Representatives and is now on the calendar. 
The Senate also passed a bill to reorganize and increase the strength of 
the artillery arm of the military establishment, and also to reorganize 
several of the staff departments of the Army and make certain other 
changes. It is pending in the House Committee on Military Affairs, but 
several of its provisions were incorporated into the Military Academy 
Appropriation bill, which became a law. 

The House of Representatives passed a bill authorizing and providing 
for the construction of the Nicaragua Ship Canal. This bill was favorably 
reported in the Senate without amendment, and an agreement was 
effected for its consideration on December 10, one week after the begin- 
ning of the next session of Congress. The House of Representatives also 
passed a bill to amend the Eight Hour law so as to make its provisions 
more definite and effective, and also one to regulate interstate commerce 
in prison-made articles. 

Trust Legislation. 

A joint resolution to amend the Constitution of the United States so as 
to clothe Congress with power over trusts and combinations of capital 
was defeated by Democratic votes in the House of Representatives, but a 
bill to amend the act of 1890 designed to prohibit and prevent the opera- 
tions of such trusts and combinations in restraint of trade was passed by 
the House and is now pending in the Senate. 



When the pick is silent in the mine and the lamp is silent 
in the mills, the workingmen of the United States are idle, 
and when the working" man is idle, the farmer is deprived 
of his best customers. — Maj. McKinley to delegation of farm- 
ers, Sept. 25, 1896. 

The Bepublican Party stands now as ever, for honest money 
and a chance to earn it by honest toil. — From an address by 
Hon. Wm. McKinley before the Marquette Club, Chicago, Feb. 
12, 1896. 

Not open mints for the unlimited coinage of the silver of 
the world, but open mills for the full and unrestricted labor 
of the American workingmen. — Maj. McKinley's letter of ac- 
ceptance. 



THE TARIFFS OF EUROPE. 

The Free-Trade Experiment Being Abandoned by the Leading 1 
Countries of Continental Europe and the Protective System 
Substituted. 

The tariff experiences of the great nations of Europe should 
interest every voter of the United States. For, however silent the 
Democracy may be at the present moment upon that 
s abject, its real attitude and intentions in favor of 
free trade ore so well known that there can be no 
doubt as to what its course would, be in case it should again 
obtain control of the Government. It is interesting, therefore, at 
this time, when the Democratic party is asking to be again 
placed in power in Congress and in the White House, to deter- 
mine what has been the experience of the nations of Europe 
which have, within a comparatively short time, tested free trade 
ns well as protection. It is by the experiences of others as well 
as of ourselves that we learn. True, the experience of the low- 
tariff period through which the country passed but a few years 
ago would seem to be sufficient warning against a return to that 
experiment, but it may be interesting and profitable to review 
briefly the experiences of the great nations from whose popula- 
tion the United States has drawn so large and valuable an ele- 
ment of its present citizenship. 

Many Low-Tariff Experiments in Europe. 

Nearly every European nation has, within the last half century, 
following the example of Great Britain and yielding to the va- 
rious plans set on foot by the free traders of that country and 
elsewhere, tested the low-tariff or free-trade proposition; and 
practically all. save England, have, after experiments as disastrous 
in many cases as those of 1894-7 in the United States, within the 
past few years, abandoned free trade and returned to protection. 
German y, France, Russia, Sweden, Austria-Hungary, and Belgium 
have, within the lifetime of a generation, adopted tariffs intended 
to protect and foster manufactures, some of them with rates of 
protection strongly marked and clearly defined for this specific 
purpose. The facts which are here presented are drawn chiefly 
from the work of Mr. George B. Curtiss, entitled Protection and 
Prosperity, of which President McKinley said: 

We try nations as they appear on the balance sheet of the world. We 
try systems by results; we are too practical a people for theory- Those 
of us who believe the American policy of protection is best adapted to 
our citizenship and civilization are naturally glad to claim the exper- 
iences of other nations, when they sustain, beyond the question of doubt, 
the judgment of our own people, though our own belier is sustained by 
the highest American authorities from Washington down and by a hun- 
dred years of experience. 

Germany. 

The German Empire was organized in 1871 by a political union 
of Prussia and the German States of central Europe. Prior to 
that time they had been drawn into closer relationship by a 
zollverein or customs union based upon the tariff law of Prussia, 
in which the schedule of duties was fixed by a congress of repre- 
sentatives appointed from the various States. This zollverein 
parliament continued in charge of the tariff regulations of the 
union until the adoption of the constitution for the Empire in 
1871, and between 1843 and 1850 advanced duties very materially. 
After the abandonment of the. policy of protection in England, 
however, a campaign against protection on the Continent "was 
be°un, headed by Mr. Cobden, and by co-operation with the free 
trader's of Germany. The first step in the reduction of tariff 
schedules of the zollverein was accomplished in 1865, when many 
of the duties were reduced and others repealed. Further re- 
ductions were made in 1868, 1869, 1870, and 1873, and by 1877 
the entire protective system had been swept away and the Ger- 
man Empire passed to a free-trade policy. 

The experiment, however, was of comparatively short dura- 
tion. Immediately after the establishment of the Empire in 

202 



i \r; if FN OF KI/RQFB 

1871 a protectionist party was organized to combat the fcheorjeg 

of free trade and soon found a strong- supporter in Prince Bis- 
marck. By 1875 the strength of the protection policy had great- 
ly increased. There was the usual cry of "robber barons,'" "mo- 
nopolists," and "plutocrats," but such arguments did not de- 
ceive Bismarck. 

He knew well [says Mr. Curtiss] that the cry was raised as a sham; that 
any undue and improper encroachments of capital, as well as combina- 
tions of all sorts detrimental to the common people, could be stamped out 
or controlled only through State action, while under the individualism of 
free trade the hand of the Government would be kept oft*, aud there would 
be no delay as to the law of the survival of the fittest or check to the 
aggression of improper combinations. With a well-directed government, 
Bismarck did not fear the wealth of the people, but saw the great benefit 
of capital when directed to the development of the resources of a country 
and rh« employment of labor. 

In a speech in the Eeichstag- Bismarck said: 

1 wish we could immediately create a few hundred millionaires. They 
would spend their money in the country, and this expenditure would give 
fruit to labor all around. They could not eat their money themselves; 
they would have to spend the interest of it. Be glad, then, when people 
become rich with us. The community at large.' and nut only the tax 
authority, is sure to benefit. 

A conference was held at Heidelberg" to consider financial con- 
ditions, and an increase in duties was recommended. An ad- 
dress from the throne shortly after (February 12, 1879) said: 

I am of the opinion that the country's entire economic activity has a 
right to claim all the support which right adjustment of duties and taxes 
can afford, and which in the lands with which we trade is perhaps af- 
forded beyond actual requirement. I regard it as my own duty to adopt 
measures to preserve the German market to national production so far 
as is consistent with the general interest, and our customs legislation 
must gradually revert to the true principles on which the prosperous 
career of the zollverein rested for nearly half a century, but which have 
in important particulars been deserted in our economic policy since 18t;~. 
I can not deem that actual success has attended this < hauge in our ens- 
torus policy. 

On May 28 of the same year Prince Bismarck, in a speech in 
the Eeichstag which lasted for more than an hour, said that the 
German market had become the mere storage space for the over- 
production of other countries. Countries which were inclosed, 
he said, had become great, and those which had remained open 
had fallen behind. 

Were the perils of protectionist rule s.. gr< - toted 

France would long ago have been rained, instead of which it is more 
erous, after paying the five milliards, than Germany to-day. And 
protectionist Russia, too— look at her marvelous prosperity. Manufac- 
turers there have lately been able to save from 30 td '■'■'< per cent, and 
.ill at the cost of the German market. L<t us close our doors and erect 
somewhat higher barriers and let us take care to pr tin at least 

the German market and German industry. 

Speaking of the depression in ag-rieultnre a-s a result of free 
trade, he said: 

No! only agriculture, but the preset : state and the German B 
itself would go to ruin. 

He regarded the German farmers, however, as wise enough to 
take care of their own interests, and added: 

Twenty million farmers will not allow themselves to be ruined. Ir is 
only necessary that they should become conscious of what is before them 
and they will try to defend themselves by legal and constitutional 
methods. 

On another occasion Prince Bismarck, recommending still 
higher protection, said: 

The success of the United States in material development is the 
illustrious of modern times. The American nation has not only success- 
fully borne and experienced the most gigantic and expensive war of all 
history, bat immediately afterwards disbanded its army, found work for 
all its soldiers and marines, paid off most of its debt, giving labor and 
homes io all the unemployed of Fuiope as fast as they could arrive 
within the territory— and still by a system of taxation so indirect as not 
to be oppressive, much less felt. Hence it is my deliberate judgment 
that the prosperity of America is due mainly to its system of protective 
laws. I think that Germany has now reached that point wbeie it i* neces- 
sary to imitate the tariff of the United States. 

His nd vice was accepted. Germany became a thoroughly pro- 
tective country, and the world knows the result in the fact that 
Germany is now one of the most prosperous — perhaps the most 
prosperous — of the industrial and exporting countries of all Eu- 



804 TARIFFS OF EUROPE. 

rope, pushing her commerce to every part of the world, compet- 
ing keenly and successfully with that of her older and long- 
experienced neighbor, Great Britain, while within the Empire 
busy workshops and prosperous and contented people are every- 
where found. Of its prosperity a British official representative 
at Berlin, Mr. Gastrell, the commercial attache to the British 
embassy at that capital, in a communication to the British Gov- 
ernment on January 29, 1899, said: 

After completing his famous political work, Prince Bismarck addressed 
himself to directing the energies of the peaceful and commercial aims, 
and he achieved a success beyond his most sanguine hopes. When it is 
realized that in 1897 the value of German exports of domestic produce was 
only £58,000,000 less than similar exports of British origin, and that 
the proportion thereof per head of population has tended to rise in Ger- 
many and fall in England, perhaps the British public will begin to devote 
closer attention to commercial and industrial development on the con- 
tinent. 

Aided by the state and protected by a moderate tariff from severe for- 
eign competition, German industries and commercial enterprises of all 
kinds came into existence, developed, and flourished. This took place 
much more rapidly than in most other countries, particularly because the 
Germans benefited by the knowledge and experience of older industrial 
States. After a period of so-called free-trade principles, protection was 
agaifi adopted in Germany with the introduction of a tariff which effected 
many sweeping changes at the instance of both the agricultural and in- 
dustrial parties. In manufactured articles the value of imports fell from 
£49,000,000 in 1889 to £46,000,000 in 1896, while that of exports rose 
from £104,000,000 to £115,000,000 in the same period. There is in the 
above two comparisons ample demonstration of the satisfactory state of 
manufacturing industries, which have not only developed an increased 
export value of about £10,000,000 ($50,000,000> during that time when 
prices for manufactures generally have been falling, but they have also to 
an enormous extent replaced the formerly imported manufactured goods. 

The above tribute to German prosperity under protection, com- 
ing from a British official representative at the German capital, 
fully sustains the reports which come through other sources of 
the phenomenal prosperity of Germany under protection. 

Russia. 

Russia, after a series of experiments with free trade, has re- 
cently adopted a thoroughly protective tariff system. The Rus- 
sian tariff at the beginning of the century was moderately pro- 
tective, but this feature was abandoned in 1819, but after a com- 
paratively short experiment protective duties were again adopted 
until 1849, from which time until 1876 more moderate duties 
prevailed, while from 1877 to the present time duties have been 
levied with a view to protecting Russian productions and Russian 
industries. That the protective system has been successful there 
can be no doubt. The wonderful prosperity of Russian manu- 
facturing and industrial interests in the last few years is well 
known, and an official testimonial to that fact is found in the 
report of M. Wittee, the Russian minister of finance, in his report 
of 1897, commenting on the new tariff rates adopted from time 
to time since 1880. In that report he said: 

All these measures which have exerted such a favorable influence on 
the development of Russia's productive forces were taken by three of 
my predecessors. During a period of twenty years the Government has 
remained firm in its protection of national production, and the results 
obtained during this period by Russian industry fully justify such a 
policy. From the recent extensive labors of the committee of experts, 
in which several hundreds of scientists and practical specialists took 
part, the Government obtained a plentiful supply of materials for forming 
an opinion of the present condition of our industries. The experts' ver- 
dict showed that almost every branch of industries has progressed greatly 
in quantity and quality; many new branches of industry have sprung 
up and expanded, while those which already existed haA-e developed and 
grown stronger. It is enough to speak of the vast progress in metallurgy, 
manufacture of machinery, coal mining, and the petroleum, chemical, and 
cotton industries, in the cultivation of cotton, in wine making, and in 
many other branches. Such cheering results are the consequence of the 
protective policy recently adopted by the Government. 

France. 

The industrial development of France from the close of the 
Napoleonic wars to 1860, says Mr. Curtiss, is without parallel in 
any continental country. Under the protection which then ex- 
isted the growth of manufactures was rapid and successful in 
every particular. In 1860, however, a commercial treaty was 
entered into between England and France, by which France re- 
moved all prohibitions from Imports and substituted duties rang- 
ing from 20 to 30 per cent on competing manufactures. The 



'I' A RIFFS OF EUROPE. 205 

experiment of this duty, whieh continued until 1882, was un- 
satisfactory, and the French Government refused to renew it in 
that year and a more vigorous protective policy was restored. 
In 1885 the duties on foreign products were raised, and in 1891 
a thoroughly protective tariff was enacted, under which the great 
prosperity and industrial activity which now exist have come 
to that country. 

Other European Countries. 

The tariffs of several other of the continental countries of 
Europe, except Netherlands, are now protective in their charac- 
ter. In Austria-Hungary, where duties were lowered after the 
war of 1866, the the protective system was resumed in ,1882 and 
was supplemented in 1887 by higher rates, of which Mr. Curtiss 
says: 

Three hundred and fifty-seven articles are enumerated, of which 56 are 
free of duty. The decrease of imports has been regular; new establish- 
ments are being founded by Austrian firms and Austrian money; the 
rate of wages is on the increase, and skilled labor is in great demand. 

Belgium, prior to 1844, was a free-trade country. In that year, 
as the result of an investigation and report made in 1842 upon 
the state of industry and commerce, Belgium adopted a protec- 
tive tariff, of the effect of which a Belgian writer said: "If any- 
one had left the country in 1835, after having visited our prin- 
cipal manufacturing centers, and w T ere to come back to it now, he 
would be struck with the transformation they have undergone, 
the advance they have achieved. He would find a numerous, in- 
telligent population of working people, where a quarter of a 
century ago he would have seen nothing but a few houses scat- 
tered at wide intervals over extensive plains. As a consequence, 
production — except of articles of food — has outrun the needs of 
population, and we are obliged to seek for foreign outlets." The 
British secretary of legation at Brussels, speaking of the "as- 
tounding productiveness of industry and the purchasing power 
of the people," says: "Wages have risen absolutely and in a pro- 
portion quite remarkable;" and he quoted authorities to the ef- 
fect that while in 1840 they amounted to 500,000,000 francs, they 
now exceed 1,625,000,000 francs. 

The tariff of Denmark is similar to that of Belgium, and that 
of Sweden and Norway is described by the British consul at 
Copenhagen, who says: 

The chief characteristic of the producing and commercial conditions of 
Sweden and Norway are the marked development of native industries, 
shielded by protective duties; the development of direct communications 
by sea between Sweden and other countries thus greatly diminishing the 
importation or transit of goods from England. 

"Sweden and Norway," says Mr. Curtiss, "are now enjoying a thor- 
oughly protective tariff -perhaps on the whole more protective than that 
of any other European country. The protection of years gave way to 
lower duties in both countries for several years preceding 1890, but duties 
were gradually increased until, in 1892, was enacted what has been termed 
the 'McKinlcy bill of Sweden.' To Sweden and Norway, least of all, can 
the United States look for a market, because the people of that country 
are practicing our own methods at protecting and promoting home indus- 
tries with great success." 

Numerous other instances might be given of the steady growth 
of the protective system in all parts of the world. The tariff 
of many of the British colonies is now thoroughly protective. 
This is true not only of Canada, but of several of the colonies 
of Australia, while recent changes in the rates of duty in India 
tended still farther to the East, until Japan, in the new tariff 
which was recently adopted as an accompaniment to the gold 
standard advanced her rates of duties materially, making some 
of them protective in character, and finding as an immediate 
result a reduction of imports and, according to the latest reports, 
renewed activity in manufacturing and domestic industries. 

This review of the tariff situation in European countries indi- 
cates that the long perod of low tariffs produced low wages and 
depressed labor; but this extremely unsatisfactory condition was 
followed by a reaction in favor of the protective system, and it 
is the result of the bitter experiences with free trade that the 
people of those countries are now building up their own indus- 
tries and establishing the improved conditions for labor which 
are beginning to make themselves apparent in increased wages 
nnrl increased commercial activity with other parts of the world. 



Coal Production in the United States, United Kingdom, Ger- 
many, and the Entire World From 1868 to 1899, Showing 
the Relative Increase in Coal Production in the Countries 
"Whose Industries Are Fostered by a Low or Protective Tariff; 
Also the Relative Value of Coal Produced in the United 
States in Protective and Low Tariff Years. 

The coal production of the United States, which has advanced 
rapidly under the protective system, which both excludes foreign 
coal from competition with that of the United States and also 
increases enormously the demand by the requirements of the 
manufacturers whose industries are fostered by protection, is 
pictured in the tables on page 303. They show that the United 
States, which in 1868 mined but about one-fourth as much coal 
as Great Britain, has steadily gained on that country until in 
1899 we stood at the head of the world's producers and practi- 
cally all of this produced for home consumption largely in the 
great industries which the protective system has established in 
the United States during- the period under consideration. 

Comparison of Coal Production in the United States and 
Great Britain. 

Under the development of manufacturing - industries and in- 
creased transportation and activities which have accompanied this 
development, the production of coal in the United States has in- 
creased from 31,648,960 tons in 1868 to 258,559,650 tons in 1899, 
while Great Britain, with her boasted manufacturing interests 
under free trade, only increased her output in that time from 
115,518,096 tons to 226,301,058 tons, thus indicating in some de- 
gTee the relative growth in the manufacturing industries, the 
chief consumers of coal, in the two countries. Coal production 
in Great Britain merely double in the period in question (1868-99), 
while that in the United States was seven times as great in 1899 
as in 186S. Thus in 31 years of free trade Great Britain's indus- 
tries grew sufficiently to justify her in doubling her coal output, 
and in 31 years of protection the industries of the United States 
grew sufficiently to bring the coal output of 1899 to seven times 
that at the beginning of the period under consideration. 

Germany and Great Britain Compared. 

Germany, which adopted the protective system in 1879, mined 
in that year only 58,954,461 tons of coal, in 1899 had increased her 
coal output to three times that of 1879. Great Britain's coal output 
in 1879 was 149.766.844 tons, and in 1899 226.301,058 tons. Thus Ger- 
many with 20 years of protection, which fostered her manufac- 
turing industries, trebled her coal output, while the United 
Kingdom, during the same period, with free trade, increased her 
coal output only 50 per cent. 

Effect of the Low Tariff on Coal Miners. 

Begarding the production of the United States, the table shows 
the quantity and value of coal mined from 1880 to 1899, the per- 
centage which our product formed of the world's production, 
the average price per ton at the mines from 1889 to 1899, and the 
number of employees and average number of days in which they 
were employed in each year from 1890 to 1S99. It will be observed 
that there was a marked reduction in the value of the coal mined 
during Democratic years in which industries were prostrated 
and the demand for coal thus reduced, and that while the num- 
ber of men emploj'ed at the mines was not materially reduced, 
the number of days in which they were permitted to work was 
greatly lessened, dropping in 1S94 to 17S days, against 223 in 1891, 
a decrease of 20 per cent in their opportunities for earnings, to 
sa^y nothing of the reduction in price paid for mining. An ex- 
amination of the column showing the imports of coal will show 
that even during the depressed period which accompanied the 
existence of the Wilson low tariff, when the value of the coal 
rained in the United States had fallen $20,000,000 below those of 
earlier years, importations of coal increased under the reduced 
tariff. 

206 



A Weil-Known German on Germany's Progress Under Pro- 
tection. 

Consul-General Guenther, at Frankfort, points out in a recent 
report that the industrial and commercial development of Ger- 
many, which commenced some five years ago and has increased 
steadily, made further progress in 1899. Almost every branch 
of industry and commence participated in this expansion, and 
I he agricultural classes have also been benefited; for, while the 
ciops have been good, prices have risen — another illustration 
of the fact that the increase of industrial establishments helps 
the farmer by giving' him a better home market. "It is a remark 
often heard from Americans traveling here," he says, "that no 
other European country snows such general signs of prosperity 
among all classes as Germany, Almost every well-In±ormed per- 
son admits that this has been the result of the industrial devel- 
opment of the empire, and the leading newspapers are strong 
advocates of commercial expansion. The growth or diminution 
of German imports and exports since 1893 is given below: 

IMPORTS. 

Yttirs. Vtdtuii. Jiiii\(isi. Jhirnisi. 

1893 $984,000,noo 

1894 1,020,000,00(1 $36,000,000 

1895 1,010,000,000 .$10,000,000 

1896 1,085,000,000 75,000,000 

1897 1,158,000,000 73,000,000 

1898 1,304,000,000 146,000,000 

Jan. 1 to Sept. 30: 

1898 945,000,000 

1899 950,000,000 5,000,000 

EXPORTS. 

1893 $772,000,000 

1894 726,000,000 .... sjmo.moo.ooo 

1895 815,000,000 $89,000,000 

1896 894,000,000 79,000,000 

1897 902»O00,00Q 8,000,000 

1898 952,000,000 50,000.0i>o 

Jan. 1 to Sept. 30: 

1898 687,000,000 .... 

1899 728,000,000 41,000,000 



Arraying labor against capital is a public calamity and an 
irreparable injury to both. — Maj. McKinley to Commercial 
Traveling Men's Republican Club, Sept. 26, 1896. 

The judgment of the people is swift and terrible against 
those who mislead and delude them. — Maj. McKinley to Com- 
mercial Traveling Men's Republican Club, Sept. 26, 1896. 

The price of wheat is fixed by the law of supply and demand, 
which is eternal; gold has not made long crops or short crops, 
high prices or low prices. — Maj. McKinley to Homestead work- 
ingmen, September 12, 1896. 

You cannot afford to have the question raised every four 
years whether the nation will pay or repudiate its debts in 
whole or in part. — Hon. Wm. McKinley to delegation of farm- 
ers at Canton, September 22, 1896. 

The mints will not furnish the farmer with more con- 
sumers. The only market that he can rely upon every day 
of the year is the American market. — Maj. McKinley to In- 
diana delegation, at Canton, Sept. 29, 1896. 

Class appeals are dishonest * ; they calculate to 

separate those who should be united, for our economic in- 
terests are common and indivisible. — Maj. McKinley to Com- 
mercial Traveling Men's Republican Club, Sept. 26, T896. 

The national credit is inseparably associated with our na- 
tional growth and prosperity, and if you touch the latter with 
an unfriendly hand you will seriously injure the former. — 
Hon. W. McKinley, in House of Representatives, April 15, 
1878. 

207 



WHY PRICES OF MANUFACTURES HAVE 
ADVANCED. 

Cost of Raw Material From Abroad Has Increased From 50 to 
100 Per Cent. 

How far are the manufacturers of the United States respon- 
sible for the recent increase in the price of manufactured goods? 
This is an especially interesting- question in view of the disposi- 
tion to charge every advance in price to those who produce the 
finished article offered to the consumer. While most thinking 
people probably expected to see some increase in cost of manu- 
factures in view of the advance in wages, which has been from 
10 to 50 per cent, and in some cases much more, the assertion is 
frequently made that the advance in the price of the finished ar- 
ticle is greater than is justified by the advance in wages. 

But there is another and very important factor which is prob- 
ably not taken into account. This is the even greater advance 
which has occurred in the cost of the raw material entering into 
the manufacture of the articles used in everyday life. Iron and 
steel have advanced in price; but how many people know that 
the iron ore from which they are made has more than doubled 
in price? But this is the fact. 

The following table, furnished by the editor of the Iron Trade 
Eeview, an accepted authority, shows the prices of iron ore in 
1898, 1899 and 1900. It will be seen that the advances have been 
in most cases more than 100 per cent in the raw material: 

[These prices have been furnished to the American Iron and Steel Associa- 
tion by Mr. A. I. Findley, editor of the Iron Trade Review.] 



Grades. 



Mesabi Bessemer 



Mesabi non-Bessemer 

Marquette specular : 

No. 1 Bessemer 

No. 1 non-Bessemer 

Chapin 

Soft hematites, No. 1 non-Besse-j 

mer 

Gogebic, Marquette, and Menomi- 
nee No. 1 Bessemer hematites. . 
Vermilion No. 1 hard non-Besse- 
mer .' — 

Chandler No. 1 Bessemer 

Marquette extra low-phosphoric 
Bessemer 



1898. 


1899. 


1900. 


$2.15 to $2.25 
1.70 to 1.85 


$2.25 to $2.10 
1.90 to 2.10 


$4.40 to $4.90 
4.00 to 4.25 


8.10 to 3.35 

2.35 to 2.45 

2.56 


3.21 to 8.50 

2.50 
2.73% 


5.93 to 6.48 
5.00 
4.96 


1.80 to 2.00 


2.00 to 2.15 


4.15 to 4.25 


2.75 to 2.95 


2.80 to 3.25 


5.50 to 5.75 


2.50 
3.13- 


2.65 

3.35 


5.10 
6.00 


3.65 


3.85 to 3.90 


6.80 to 6.90 



The base price for 1900 of "old range" Bessemer ores, those from the Mar- 
quette, Menominee, Gogebic, and Vermilion ranges, have been fixed at $5.50, 
against $2.95 in 1899. 



Prices of Finished Product Do Not Advance as Rapidly as That 
of Raw Material. 

In tin plate the advance in pig tin and steel, the chief constit- 
uents, has been over 100 per cent each, while the increase in tin 
plate in the New York markets has been but about 50 per cent, 
as shown by reports of the Bureau of Statistices on the prices of 
all the articles mentioned. 

Crude petroleum, which is supplied from hundreds of wells 
owned by individuals in many different sections of the country, 
advanced from 65 cents per barrel in January, 1898, to $1.68 per 
barrel in February, 1900, an increase of 15S per cent, while the 
price of refined oil in cases increased in the same time from 5.95 
cents per gallon to 11.1 cents, or 87 per cent. 

Possibly the reply to the above facts relative to the advance in 
the raw materials produced at home may be that their prices 
have been put up in some mysterious way by a combination 
which could control the hundreds of iron mines and oil wells. 

208 



WHY PRICES HAVE ADVANCED. 209 

Higher Prices for Foreign Raw Materials. 

But v\ ill it be claimed that "trusts" are controlling the prices 
of the raw materials which come to us from the forests of Brazil, 
the wilds of Central America, the jute fields of India, the tin 
mines of Malacca, the sisal-growing fields of Mexico, the silk- 
producing areas of Japan and China and Italy and France, and 
the cinchona growers of South America and India? 

In all these articles of foreign production, which our manufac- 
turers must have for use in their industries, the advance in the 
cost of the article abroad, where its price can not be affected by the 
Americ m tariff, has been from 50 to 150 per cent. The Bureau 
of Statistics has for many years presented in its monthly and 
annual publications statements of the prices in foreign markets 
of the leading articles of manufacturers' materials and food 
stuffs imported. The prices of those articles are determined by 
the statement of the importer, who in his invoice names under 
oath the actual cost of the article at the foreign port whence it 
is shipped to the United States. The statements thus obtained 
indicate, therefore, the actual price in tlic foreign market unaffected by 
tariff charges at United Stales ports. 

A study of the latest figures of the Bureau shows a remarkable 
increase in the foreign price of many of the articles imported for 
use in manufacturing. In sisal, which comes chiefly from Mex- 
ico, the increase is more than 1ft© per cent within the last two 
years; in Manila hemp, 100 per cent; in jnte, over 50 per cent; in 
raw silk, 33 per cent; in india rubber, more than 25 per cent; in 
clothing wool, 33 per cent; in tin, 50 per cent; and in raw sugar, 
25 per cent. During the nine months ending with March, 1900, 
the importation of Manila hemp amounted to 29.107 tons, valued 
at $4,260,580, Avhile in the corresponding months ending with 
March, 1898, 39,599 tons were valued at but $2,449,468, the average 
price per ton in the nine months just ended being $146.50, against 
$61.85 in the corresponding months of 189S. 

In sisal grass, which is imported from Mexico, the increase has 
been even more strongly marked, the 52,875 tons imported in the 
nine months ending with March. J 900, being valued at $8,007,961, 
or $151.30 per ton, against an average of $62.42 per ton in the 
corresponding" months of 1898. Jute, which a\ erageel $23.65 per ton 
in the nine months ending with March, 1898, averaged $36.80 in the 
nine months ending with March, 1900. Kaw silk also shows a 
marked increase, the average price per pound in the fiscal year 
1897 being $2.84; in 1899, $3.19, and in the nine months ending 
with March, 1900, $3.94, while during the month of March alone 
the average price was $4.60, as against an average of $2.S4 in the 
fiscal year 1897. Raw sugar, "not above No. 16, Dutch standard," 
whose average cost in the foreig'n markets during' the fiscal year 
1S97 was 2 cents per pound, was, during the nine months ending 
with March, 1900, 2.42 cents per pound, and in the month of 
March over 2 1 /, cents per pound, an increase of 25 per cent in the 
cost in the foreign markets. 

The following table shows the average value in foreing coun- 
tries of the articles named during the fiscal years 1897, 1898, 1899, 
and the nine months ending with March 31, 1900, as shown by the 
figures of the Treasury Bureau of Statistics, which are based, as 
above indicated, on the statements by importers of the cost of the 
goods in question at the foreign ports from which they are 
shipped to the United States: 





Prices of articles in country of origin. 






icles. 


Fiscal year— 


Nine 

months, 

1900. 


Art 


1897. 


1898. 


1899. 


Manila hemp . . 

sisal 

India rubber. . . 

Silk, raw 

Sugar, raw 

Tin in bars 


per ton.. 

do 

per pound. . 

do 

do — 

do 


873.68 

60.(50 
.491 
2.84 
.0201 

.129 


S64.44 

74.59 

..551 

3.05 

.0224 

.1373 


§116.(32 

128.12 

.62 

3.19 

.0228 

.1595 


$146.50 
151.30 

.65 
3.94 

.0242 
.260 



I For additional table on prices of articles iu foreign countries see page 307.) 



DEMOCRATIC VIEWS OF MR. BRYAN. 

Hon. Carl Schurz. 
(At (Ujicn-o, j=!ept. 5, 189&J 
The mere apprehension of a possibility of Mr. Bryan's election 
and of the consequent placing- of our country upon the silver ba- 
sis has already caused untold millions of our securities to be 
thrown upon the market. Scores of business orders are already 
recalled, a large number of manufacturing- establishments have 
already stopped or restricted their operations, enterprise is al- 
ready discouraged and nearly paralyzed. Many works of public- 
utility by industrial or railroad companies have already been or- 
dered off, thousands of workingmen are already thrown out of 
employment, gold is already being hoarded, capital is already 
being sent out of the country to be invested in Europe for Safety. 
And why, all this? Not, as the silver men foolishly pretend, 
because the existing gold standard has made money scarce, for 
capital is lying idle in heaps, scores upon scores of millions, fair- 
ly yearning for safe employment. No; ask those concerned why 
all this happens, and with one voice they will Tell you it is be- 
cause they apprehend serious danger to every dollar ventured 
out through the change of our standard of value in prospect, 
through the debasement of our currency threatened by the free 
silver coinage movement. And if these are the effects of a mere 
apprehension of a possibility, what would be the effect of the 
event itself? There is scarcely an imaginable limit to the de- 
struction certain to be wrought by the business disturbance 
that Mr. Bryan's mere election would cause. 

Hon. Joseph W. Bailey, M. C, From Texas. 

(Address at Gainesville, Tex., 1896.) 

I have received a great many letters from all parts of the 
State, and especially from friends in this district, asking for a 
specification of those fundamental principles in respect to which 
I diner from Mr. Bryan. These letters are so numerous and so 
urgent as to convince me that I owe it to myself and to my 
friends to make a full and complete statement of that subject. 

Mr. Bryan believes in the Government ownership and operation 
of telegraph lines, which to my mind is less defensible than the 
Government ownership and operation of railroads, but which is 
the first and long- step in that direction. The arguments so fre- 
quently advanced in favor of governmental ownership of railroads 
to the effect that the railroads are public hig'hways and therefore 
ought to be owned by the Government, cannot be alleged in favor 
of the ownership and operation of telegraph lines, and yet it is 
upon that argument that the advocates of the governmental own- 
ership and operation of railroads base their whole contention. 
It might be difficult to successfully combat the demand for gov- 
ernmental ownership and operation of railroads if it involved 
only the establishment and maintenance of a public highway, 
but it requires very much more than this, and before it can ever 
be made feasible the Government must become a common car- 
rier. I myself am unable to understand any principle that will 
justify the Government in becoming a transporter of goods, 
which, if followed to its logical conclusion, will also justify the 
Government in becoming the producer or seller of the same 
goods. 

Mr. Bryan believes that the Federal Government possesses the 
power to destroy institutions which the States have a right to 
create and he voted against the bill to repeal the odious tax of 
ten per cent on the issue of State banks. Every Democrat in 
Congress when that law was under consideration denounced 
it as unconstitutioanl, and the only real Democrat on the Su- 
preme Bench, when it came before that Court declared that it 
was an unconstitutional invasion of the rights of State banks. 
Not only so, but the Democratic national platform of 1892 ex- 

210 



DEMOCEATS ON BRYAN. 211 

pressly demanded its repeal and nearly every Democrat except 
I hose who advocate national banks voted to repeal, both in the 
Kitty-second and Fifty-third Congresses. I am not myself an 
advocate of State banks of issue, but I contend that the Federal 
(government has no power to nullify a charter which the States 
.have the right to grant. 

Mr. Bryan believes in issuing money directly to the people. 
To my mind this proposition evinces a misconception of the duty 
of the Government as well as of the principles which underlie 
the currency question. 

Mr. Bryan believes that the Federal Courts have a right to hold 
a State law void, although that State law might be perfectly con- 
sistent with the Constitution and not inconsistent with the 
Federal Constitution or Federal treaties or Federal statutes, but 
might in the judgment of the Court be in contravention of the 
natural rights of men. This opinion is entirely and completely 
subversive to the whole Democratic theory of this Government. 

These differences are fundamental and irreconcilable, so far 
as I am concerned, for I would not yield my convictions in regard 
to them any more than I would give up my power to think. 
As your representative in Congress I would feeel it my sacred 
duty, a duty to you, a duty to myself and a duty to my whole 
country to resist with all the power I possess any recommenda- 
tion which the President might see fit to make in opposition to 
my views. 

Gen. Daniel E. Sickles. 
(In letter to liis soldier comrades, 189ft) 

Mr. Bryan and many of his supporters are trying to combine 
the South and West against the North and East. This is section- 
alism — of which the rebellion was the offspring. Will you fol- 
low these guides into dangerous paths, or will you not rather fol- 
low Washington in "frowning upon the first dawning of every 
attempt to alienate one portion of our country from the rest, or 
to enfeeble the ties which now link together the various parts?" 
Sectionalism has become hateful to most of our old adversaries 
in the South, who have outgrown the asperities of war, and are 
now as loyal to their united country as any of us. Union vet- 
erans who fought for one union, one constitution, and one des- 
tiny, can never favor any candidate or party seeking to array 
one section of our common country against another. 

Mr. Bryan proposes to pay all the creditors of our Government 
in silver. This is repudiation. It would degrade and disgrace us 
as a nation in the eyes of the whole world. Among the creditors 
of the nation are the pensioners, tf you consent to pay in de- 
based silver the bondholder who lent his money to the Govern- 
ment to arm and feed and clothe its troops, you consent at the 
same time to a reduction of one-half of the pensions awarded to 
the war veterans, and to the widows and orphans of those who 
are not living. All the creditors of the Government must stand 
or fall together. Many of you are pensioners or the friends of 
widows and orphans who are pensioners. Many of you have 
deposited your money in savings banks. Most of you are toilers 
at the plow, or in the workshop, or dependent on small salaries 
in public or private employment. To all so situated the paj'ment 
of wages and pensions and your savings, in silver, not redeem- 
able in gold, as proposed by Mr. Bryan and his hybrid allies, 
would involve severe losses and hardships. The cost of all the 
necessaries of life would be doubled, while the value of the money 
in which wages and pensions would be paid would be reduced 
nearly one-half. On the other hand, the farmers would not be 
benefited, because they must sell their products for money worth 
only a little more than half its present value, based on a gold 
standard. 

Mr. Bryan assails the obligations of public and private con- 
tracts. He would not pay the public creditors in the money 
they have the legal and moral right to demand and receive. This 
would destroy the public credit. Mr. Bryan says the Government 
has no use for credit which is foolish. Washington, in his fare- 
well address to his count rymen, admonished ns to "cherish pub- 
lic credit as a very important source of strength and security. " 
Mr. Bryan would despoil the citizen of his right to recover what 



r 



DBMOCB \TS ON BRYAN. 

is due to him from his neighbor, according to tlie tenor of an 
obigation lawfully made. This would destroy confidence be- 
tween man and man. Public credit and national honor are in- 
separable. When our people cease to feel a patriotic pride in the 
honor of their country they will surely lose a just sense of per- 
sonal honor — and when both of these sentiments are lost the- 
nation is lost. The Constitution of the United States declares 
that ''the validity of the public debt of the United States, author- 
ized by law, including debts incurred in payment of pensions and 
bounties for services in suppressing insurrection or re- 
bellion, shall not be questioned." This pledge to all the world 
is consecrated by all the sacrifices and suffering of the seces- 
sion war. We must make it good. 

Mr. Bryan threatens to reorganize the highest court in the. 
land so that its decisions shall satisfy the demands of the Popu- 
lists. If elected he would make the Judicial department of the 
Government obedient to his will. He would destroy the indepen- 
dence of the courts of justice. This would overturn the frame- 
work of our Constitution. This would be revolution. 

Hon. Bourke Cockran. 
(At Madison Square Garden, X. T., 1896.) 

Fellow-Democrats, let us not disguise from ourselves the fact 
that we bear in this contest a serious and gTave and solemn bur- 
den of duty. We must raise our hands against the nominee of 
our party, and we must do it to preserve the future of that party 
itself. We must oppose the nominee of the Chicago convention, 
and we know full "well that the success of our opposition will 
mean our own exclusion from public life, but we will be con- 
soled and gratified by the reflection that it will prove that the 
American people can not be divided into parties on a question of 
simple morals or of common honesty. 

We would look in vain throug'h the speech delivered here one 
week ago to find a true statement of the issue involved in this 
canvass. Indeed. I believe it is doubtful if the candidate himself 
quite understands the nature of the faith which he professes. 
I say this not in criticism of his ability, but in justice to his mo- 
rality. I believe that if he himself understood the inevitable con- 
sequences of the doctrines which he j)reach.es that his own hands 
would be the very first to tear down the platform on which he 
stands. We must all remember that lurid rhetoric which glowed 
as fiercely in the western skies as that sunlight which through 
the past week foretold the torrid heat of the ensuing day, and 
here upon this platform we find that same rhetoric as mild, as 
insipid as the waters of a stagnant pool. 

He is a candidate who was swept into the nomination by a 
wave of popular enthusiasm awakened by appeals to prejudice 
and greed. He is a candidate who, declaring that this was a rev- 
olutionary movement, no sooner found himself face to face with 
the American feeling than he realized that this soil is not pro- 
pitious to revolution; that the people of this country will not 
change the institutions which have stood the tests and experi- 
ences of a century for institutions based upon the fantastic 
dreams of Populist agitators; that the American nation will 
never consent to substitute the republic of Washington, of Jeffer- 
son and of Jackson for the republic of an Altgeld, a Tillman or a 
Bryan. 

Hon. J. Sterling Morton. 
(At Chicago. Oct. 6, 1896.) 
Self-appointed guardians of "the common people" are uncom- 
monly active and vehement in urging- a general strike for lower 
wages among Americans. Some of these peripatetic elocution- 
ists are so zealous and fervid in urging the revolt for lower 
wages that they sjyeak for sixteen hours, where they study or 
think one hom% in behalf of cheaper money. They proclaim 16 
to 1 as the political panacea. And if— as has been stated by the 
highest authority of Populistic candidature — "the dollar which 
rises in purchasing power is a dishonest dollar," why is not an 
acre of farm land with which one can to day buy $50, and with 
which otip pould thirtv v^ars ng-rt hnv onlv $5. qlcn disho-npef? 



DBMOORATS ON HUVAN. 2i3 

A gold dollar has never anything but a relative value. This 
clay 1,000 bushels of wheat sell for $700 in gold. And this sale 
fixes, for the time being, between that buyer and that seller the 
wheat value of gold and the gold value of wheat. But to-morrow 
morning cablegrams report failure of wheat crop in Kussia, In- 
dia, Australia and the Argentine Republic, and before night 
wheat sells at $1 a bushel. Gold has not depreciated, but the re- 
lation of the world's supply of wheat to the world's demand for 
wheat has changed. Demand remains undiminished, supply is 
lessened, and, therefore, prices advance. The relation of sup- 
ply to demand is the sole regulator of value. And neither gold 
nor the unlimited and free coinage of silver at 16 to 1 can re- 
peal or mitigate the eternal truth. * * * 

From 1870 to 1896, both years included, the agricultural ex- 
ports of the United States have amounted to more than fourteen 
billions of dollars, being an average annually of more than 75 per 
cent of the value of all the exports of the United States during 
that period of time, and bringing in from foreign ports a billion 
of dollars more than the estimated value of all our farms at the 
census of 1890. That enormous and almost incomprehensible 
number of dollars have been paid into this country for farm 
products in gold. 

Has it cursed the farmers? 

Hon. Carl Schurz. 

(At Chicago, Sept. 5, 1896.) 

Consider now what the immediate consequences would be if 
Mr. Bryan were elected President, with a Congress to match. 
Mr. Bryan would of course be anxious to have his free coinage 
i law enacted, but that could not be, even if he called an extra ses- 
sion of Congress, until some time in April or May, five or six 
months after the day of election. But as soon as the 
-1th of November the results of the election were an- 
nounced everybody would know that the parity of gold 
and silver would not be maintained, there would be 
a rush upon the Treasury for the gold in it by per- 
sons holding greenbacks entitled to redemption, and the gold 
: reserve would be exhausted in a twinkling. Gold would instantly 
disappear from circulation to be hoarded or exported. The sud- 
den disappearance of our gold from circulation would produce 
the most stringent contraction of the currency on record. Busi- 
ness men who owe money and at the same time have money due 
them would be forced to collect that money by every means at 
their disposal. 

Our farmers who have mortgages on their property, and 'who 
have been told that free coinage will make things exceedingly 
easy for them, will have some unexpected experiences. Every 
mortgage debt that is due will be quickly called in. The mort- 
gagor who tries to have his bond extended will find an unwilling 
j ear. He who seeks to borrow money in order to replace the old 
I mortgage with a new one will be told that this is no time for 
' loans, except, perhaps, upon exorbitant conditions. The mort- 
gagor may find, too, that his bond is payable in g'old coin, and he 
will have to buy the gold at the premium then ruling. Fore- 
closures will be the order of the day. The mortgagor who seeks 
shelter under the law's delay will at any rate further burden 
his property with the cost of legal proceedings. Everywhere 
anxiety, embarrassment, sacrifice, loss and distress, even before 
Mr. Bryan could ascend the Presidential chair. 

Bryan Denominated "the Hired Servant of Bonanza Mine 

Owners." 

[Chicago Chronicle (Dcrn.), July 11. 1896.J 

, There was a time when the owners of the Big Bonanzas of the 
ar West were glad to occupy purchased seats in the United 
states Senate. 

Sharon, Stanford, Fair, Jones, Stewart and others gratified 
heir fancy in this manner until the novelty wore off and then 
hey deputized- attorneys and other employees to take their 
ilnees and vote for nroteotivp tariffs and free silver. 






vr*r 



214 DEMQC* \ I S <>\ BR1 AN. 

Of late yi'aivs, owing to the encouragement that they have re- 
ceived from the Republican party, which always "does something 
for silver" when it passes a tariff bill, the proprietors of the Big- 
Bonanzas have found it profitable to keep a large number of 
orators, lecturers and other spokesmen on the road, preaching to 
people already limping as a result of bites by the free-silver cur 
the sovereign remedy of applying the hair of the dog to the 
wound. 

Among- the men who have been thus employed and carried on 
the pay-roll of the Big Bonanzas for a number of years is Wil- 
liam J. Bryan, of Nebraska. A paid agent of and spokesman for 
the silver combine, he has not since his retirement from Con- 
gress had any other visible means of support. 

The richest men in the world, the proprietors of the Big Bo- 
nanzas, hire orators like Bryan exactly as other wealthy men 
hire fiddlers, and value them about as highly. Silver orators, 
like fiddlers, come in at the back doors of the Big Bonanzas and 
eat at the servants' table. 



Stand up for America, and America will stand up for you. — 
Mai. McKinley to Republican Press Association of West Vir- 
ginia, Sept. 1, 1896. 

The credit of the government, the integrity of its currency, 
and the inviolability of its obligations must be preserved. — 
President McKinley's inaugural. 

The national credit is of too paramount importance and 
nothing should be done to tarnish or impair it. — Hon. W. 
McKinley, in House of Representatives, April 15, 1878. 

The financial honor of this Government is of too vast im- 
portance, is entirely too sacred to be the football of party 
politics. — Maj. Win. McKinley at Canton, Sept. 15, 1896. 

No one suffers so much from cheap money as the farmers 
and laborers; they are the first to feel its bad effects and the 
last to recover from them. — Maj. McKinley's letter of accept- 
ance, 1896. 

Our flag is there, not as the symbol of oppression, not as the 
token of tyranny, not as the emblem of enslavement, but 
representing there, as it does here, liberty, humanity, and civ- 
ilization. — President McKinley at Youngstown, O., Oct. 18, 
1899. 

Our appeal is not to a false philosophy or vain theories, 
but to the masses of the American people, the plain, practical 
people whom Lincoln loved and trusted and whom the Repub- 
lican Party has always faithfully striven to serve. — Maj. Mc- 
Kinley to Notification Committee, 1896. 

As a people we are more united, more devoted to noble and 
common purposes than we have been since the foundation of 
the federal Union. There are no divisions now. We stood 
united before a foreign foe. We will stnnd united until every 
triumph of thf<: war has been made permanent. — President 
McKinley at Augusta, Dec. 19, 1898. 

The war has put upon the nation grave responsibilities. 
Their extent was not anticipated, and could not have been 
well foreseen. We cannot escape the obligations of victory. 
We cannot avoid the serious questions which have been 
brought home to us by the achievements of our arms on land 
and sea.— -President McKinley at Chicago, Oct. 19, 1898. 

Duty determines destiny. Destiny which results from duty 
performed may bring anxiety and perils, but never failure 
and dishonor. Pursuing duty may not always lead by smooth 
paths. Another course may look easier and more attractive, 
but pursuing duty for duty's sake is always sure and safe 
and honorable.— President McKinley at Chicago, Oct. 19, 1898. 



THE CIVIL SERVICE AND THE MERIT 
SYSTEM. 

The Civil Service is a name which describes in a most general 
way the great administrative function carried on by the Gov- 
eminent, in civil affairs, as distinguished from military and naval 
affairs. In a word, it means the operation of the government a I 
body in civil life. The merit system is a title given to distin- 
guish a plan for the appointment of administrative agencies in 
the civil field. It is sujjposed to distinguish between a system or 
operation under which the test of merit or fitness is to be ap- 
plied to the administrative servant as against the system or 
method under which such servants were chosen, with little re- 
gard to the fitness or merit of such servants, but with pre-emi- 
nent regard to the desires of those who held positions of political 
power and influence. 

Civil service reform is a term which describes an effort to break 
away from the latter method and to establish effectively the for- 
mer method. That the necessity of this reform was great need 
not be argued. It is everywhere confessed. That the reform 
has been largely secured, that the fruits of it are most bene- 
ficial, and that they will never be lost, is equally certain. To the 
merit system, as opposed to the so-called spoils system, every in- 
telligent and patriotic citizen will yield his adhesion. How to 
establish the merit system and render it perfect in its working 
has been the study of the practical students of civil service re- 
form. Under their influence legislation has been enacted and a 
method of reaching the results desired been established. But 
to claim for the law and for the methods pf its application abso- 
lute perfection would be to claim for it what cannot justly be 
said of any other institution heretofore established by the wit 
of man. As a corolla r\ to that principle, which required merit 
in the civil appointees, a strong element of protection against 
dismissal from office of meritorious service was a necessity. Too 
much emphasis, however, has been put, and is likely to be put, 
upon this last proposition. It lias led to the belief that once ap- 
pointed to the Government service the servant has a vested right 
in his position and that some peculiar sanctity surrounds him. 
This is not an unnatural, but ii is an erroneous, conclusion. 
The relation of the Government to an employee is not different in 
its natural principle from the relation between all other em- 
ployers and their employees. 

It is a matter of wise expediency, however, that the right- 
minded and efficient employee in the Government service b© thus 
guarded. It is expedient, because, without this protection, the 
best talent and the most highly qualified servants would be less 
likely to aspire to such employment. The order of President 
McKinley, of July 27, ls'b, which forbids removals "from 
any position subject to competitive examination except 
for just cause and upon written charges filed with the Head of 
the Department or oilier appointing officer and of which theac- 
cused shall have full notice and an opportunity to make defense," 
firmly established that protection which had'heretofore theoret- 
ically existed, but, all too frequently, had been ignored. 

Competitive Examinations. 

Competitive examinations are used in determining the fitness 
of ca ndhlates for appointment. It is a very good method, and, 
within limitations, it is probably the best that can be devised. 
It, however, is not the only method. Experience has shown that 
in certain particulars it is cumbersome, awkward, expensive, dil- 
atory, and not always effective. Under the system of competi- 
tive examinations, the Commission, by itself, or through its 
agencies, which are found wherever a free-delivery post-office is 
established, holds examinations, from time to time, in order to 
secure what are called 'eligible lists," for such positions as the 
administrative officers are required to fill, and for which no can- 
didates are to be formd upon the books of the Commission. It 
will be readily apprehended that, with these examinations at 
periods of time often widely separated, the knowledg-e of the 
fact that such examinations are to be held fail to reach the at- 
tention of many who would gladly compete, or in any proper 

215 



_ 



216 THE CIVIL SERVICE. 

way demonstrate their fitness for appointment in the Govern- 
ment service. It lias been found, that when appointees are de- 
sired for the public service in too many cases there are no eli- 
gible lists. Under such conditions the administrative officer can 
make a temporary appointment. The appointee, appointed for 
^three months, may be reappointed, if at the end of that time 
there be no eligible list. And so he may be reappointed again 
:and again until an eligible list is established from which the 
Commission can tender the administrative offica* three names, 
from which it is his chity under the law to select one. There 
as thus a door to the practical working of competitive exam- 
inations through which appointments can be made for per- 
iods of time more or less protracted, without any regard whatever 
ix> the merit system, nor is this door so narrow as many people 
may imagine. Through it, taking the Department as a whole, 
[hundreds of thousands of appointees have entered without re- 
gard to the sanction of merit and fitness which the law contem- 
plates. 

The Registration System. 

In determining the question of merit and fitness, and in pro- 
tecting the Government against the evil influence of political 
patronage, there is a means other than the competitive examina- 
tion method. That method may be called "The .Method of Regis- 
tration." It can not be judiciously offered as a substitute for the 
system of competitive examination, but experience has demon- 
strated that it can be made effectively supplemental to the other 
method, and that the two together may be made to work out bet- 
ter results than either alone. Such is the opinion of those who 
have had the responsibilities of departmental administration, 
and such is the opinion of the Civil Service Commission itself. 
In the Navy Yards of our country the system of registration has 
been continuously in vogue. It is made operative over all em- 
ployees seeking mechanical or semi-mechanical positions. There 
are some thousands of men employed in the Navy Yards. The 
office for registration is always open and the officer in charge 
always accessible. Any person desiring- appointment in these 
branches may at any time apply to such officer for registration. 
The examination is non-competitive. Each applicant is measured 
by a fair test of fitness for the work he aspires to do. His age. 
state of health, physical vigor, knowledge of the occupation he 
seeks to enter, with evidence of his sobriety and good character, 
determine whether or not he is fit for such employment. He is 
required to write his own application and in his own handwrit- 
ing to answer a multitude of questions, the answers to which tell 
the story of his past history, etc. If he reaches the required 
standard of fitness, his name and address are registered, and 
when the departmental service requires services such as he has 
proved himself able to render, a name is tendered by the regis- 
ter officer (taken from the top of the registration list) to the 
appointing officer. This, briefly, describes the method of regis- 
tration. As before remarked, in the Navy Yards this system has 
been in vogue for years. It has worked effectively and satis- 
factorily in securing- able and competent employees, and political 
influence has entirely failed to operate in determining the selec- 
tion of employees. Whoever will reflect a little upon these two 
methods will be able to perceive that the registration system is 
simpler and more prompt in its action than the system of com- 
petitive examinations. 

Admitting the superiority of the system of competitive exam- 
inations as a method of obtaining the highest degree of merit in 
that large range of positions where knowledge and education are 
important factors, one can admit, with equal frankness, that in a 
large group of occupations, where the skilled hand is the pre- 
ponderating element of importance, scholastic competition is not 
only unnecessary but often unjust. One American citizen has as 
good rig-ht as another American citizen to appointment in a Gov- 
ernment position for which he is equally well fitted, even if his 
range of general knowledge and the state of his education in 
other fields be less than his competitor. If a man is wanted to 
make brick the important thing to determine is whether he can 
make good brick. If he can do this the question is answered. 
Whether or not he can understand compound fractions or can 
spell less or more accurately than his brother brickmaker is 
unimportant. 



THE CIVIL SERVICE. 217 

With these general thoughts in mind, one can read the order of 
the President amending the Civil Service Rules with a better 
comprehension of the reasons for its fulmination and a better 
understanding of its reach and scope. 

In his action the real principles of the merit system have not 
been lost sight of. His effort has been to make that system more 
effective, and at no point can he be justly charged with a desire 
to prostitute the Civil Service to the base uses of the "spoilsmen." 
Indeed, the conduct of the business by President McKinley and 
his counsellors and associates has been always characterized by 
freedom from partisanship and devotion to the public interests. 
He has not evaded the civil service law — he has put in practice 
the true principles of civil service reform. 

Peace first, then government afterward, giving the largest 
liberty possible and the largest participation in government 
of which the inhabitants are capable. — President McKinley 
at Evanston, 111., Oct. 17, 1898. 

It is not a good time for the liberator to submit important 
questions concerning liberty and government to the liberated 
while they are engaged in shooting down their rescuers. — 
President McKinley at Boston, Feb. 16, 1899. 

There is just one thing in the mind of every true American 
to-day, and that is that our flag, which has been assailed in 
the Philippines, shall triumph, and those who assail it shall 
fail of their purpose. — President McKinley at Kenosha, Wis.,, 
Oct. 17, 1899. 

Our flag is there — rightfully there; as rightfully there as 
the flag that floats above me is here; and it is there, not as 
the flag of tyranny or as the symbol of slavery, but it is there 
for what it is here and for what it is everywhere — justice and 
liberty and right and civilization. — President McKinley at 
Warren, O., Oct. 18, 1899. 

All hostilities will cease in the Philippines when those -^no 
commenced them stop; and they will not cease until our flag, 
representing liberty, humanity, and civilization, shall float 
triumphantly in every island of the archipelago under ths 
acknowledged sovereignty of the United States. — President 
McKinley at Racine, Wis., Oct. 17, 1899. 

This war, that was so speedily closed through the valor 
and intrepidity of our soldiers, will bring us, I trust, blessings 
that are now beyond calculation. It will bring also burdens, 
but the American people never shirk a responsibility and 
never unload a burden that carries forward civilization. — 
President McKinley at Cedar Rapids, la., Oct. 11, 1898. 

We were all together in the fight; we mrs*- he rll together 
in the conclusion. This is no time for divided councils. Tlr's 
is the solemn hour demanding the highest wisdom and the 
best statesmanship of every section of our country, and, thank; 
God, there is no North, no South, no East, no West, but all 
Americans forever. — President McKinley at Boone la., Oct. 11,. 
1898. 

We will not take down that flag, representing liberty to the 
people, representing civilization to those islands; we will not 
withdraw it, because the territory over which it floats is ours 
by every tenet of international law and by the sacred sanc- 
tion of a treaty made in accordance with the Constitution of 
the United States.—- President McKinley at Waterloo, la., Oct. 
16, 1899. 

The Philippines are ours. The men whom we emancipated 
from slavery, the men to whom we brought liberty, a fraction 
of a single tribe in a single island of the great archipelago, 
assailed the flag and the soldiers of the United States carry- 
ing it on that island; and nothing is left for us to do but put 
down the rebellion, and that we propose to do. -^-President 
McKinley at Young-stown 3 O., Oct. 18, 1899, 



THE FACTS ABOUT THE PHILIPPINES. 

A Plain Statement by Former Minister to Siam. Hon. John 
Barrett. 

There is given below a plain statement ox facts about American 
occupation of the Philippines by Hon. John Barrett, late U. S. 
Minister to Siam, which is of especial interest and value because 
no American, not in the Army and Xavy, had a better oppor- 
tunity of learning the exact truth about the Philippines and the 
events that followed Dewey"s destruction of the Spanish fleet. 
While Mr. Barrett was United States Minister at Bangkok, Siam, 
which is a comparatively near neighbor of Manila, he visited the 
islands and travelled through them from Aparri on the northern 
end of Luzon to Zamboanga in Mindanao and the Sulu group on 
the south. He first met Aguinaldo then and renewed his ac- 
quaintance later in Hong Kong, and again in Cavite, Bakor, and 
Malolos. 

At the outbreak of the Avar with Spain, Mr. Barrett resigned 
his position as Minister, proceeded direct to Hong Kong, where 
he was present at the incidents connected with Aguinaldo's re- 
turn to the Philippines, and then went immediately to Cavite. 
in early May, 189S, as the special war correspondent of leading 
American and European papers. He remained thereafter in and 
about Manila for a year, or until April. 1S99, and was thoroughly 
familiar with all the events that led up to the outbreak of Feb- 
ruary 4, 1899. He was first the guest of Admiral Dewey with the 
American fleet, and until the capture of Manila was every day 
in touch with Aguinaldo and his forces, as well as with the 
American naval and army commanders. Up to the first fighting; 
of the insurrection there was no man who had more frequent 
intercourse with both the American and Filipino forces and 
leaders. He used all of his influence to prevent a conflict, and 
was on most friendly terms with the Filipinos until they became 
so carried away with rampant antagonism to Americans, under 
the influence of unscrupulous natives and Spaniards, that they 
would listen to no reason and were determined to fight at all 
hazards. Mr. Barrett, in his review of the Philippine situation, 
says: 

Aguinaldo's Career. 

. First. — As Don Emilio Aguinaldo y Fami, as he is known among 
the Filipinos, is the head and front of the insurrection, it is well 
to trace briefly his relations with the Spanish Government which 
led to his leaving the islands and going to Hong Kong. As the 
leader of the insurrection in 1896 and 1897, he retreated to Bien- 
cabato in the mountains and there agreed to discuss terms with 
the Spanish officials. Primo de Rivera, a noted Spanish general 
and politician, was sent to the Philippines with unlimited credit 
to buy off Aguinaldo and his leaders. Through Pedro Paterno, a 
prominent Filipino, he came to an understanding with Aguinal- 
do. in which he agreed to give Ag'uinaldo and certain of his 
leaders $^00,000 if they would surrender their arms and leave the 
islands forever. Four hundred thousand dollars were to be paid 
into the Hong Kong and Shanghai Bank and the Chartered Bank 
of India, Australia and China in Hong Kong, when they sailed 
from Manila: $200,000 were to be paid at a later date, and '$200,000 
more to be given to Filipino leaders who were allowed to remain 
in the islands; while certain reforms were guaranteed by the 
Spanish Government. 

Aguinaldo accepted This proposition, although many prominent 
Filipinos, like Macubulus at Tarlac and Artacho. objected most 
strenuously, claiming that the masses of the Filipino people were 
being sold out in order that a few men like Aguinaldo could be- 
come rich and enjoy life in foreign lands. 

Aguinaldo and the proscribed followers were finally escorted to 
Hong Kong in the fall of 1897 by a son of Primo de Eivera and 
other Spanish officers. Tnimcdia telv upon their arrival there 
they indulired in dinners, banquets and oilier good times, iwhej'fi 
S|j;uii.ij .is ; i j 1 1 1 Filipinos fraternized like brothers anf3 all 
thoughts of Filipino independence were seemingly forgotten. 

218 



HON. JOHN BARRETT ON THE PHILIPPINES. 219 

The British officials at Hong Kong- frequently commented on how 
easily Filipino patriots could surrender when tempted by large 
nribes and Ihe pleasure that the money could secure. 

Second. A i I long Koiig there occurred a most remarkable in- 
cident that should be impressed upon the minds of every Amer- 
ican man and woman and of every American boy and girl, in view 
of the unfortunate comparisons that are sometimes made be- 
lueeii George Washington and Aguinaldo. It also throws a 
clear light on the Filipino leaders' alleged quality of sincerity in 
Ihe present insurrection against America. Soon after Aguinaldo 
and his party arrived in Hong Kong a party was given in honor 
of him and his associates by the Spanish officers who had con- 
ducted them there. During the course of the feast one of the 
Spaniards arose and proposed the health of Aguinaldo and his 
associates as "most faithful subjects of Her Majesty, the Queen 
Kegent of Spain, and of His Majesty, the boy King, who, in their 
desire to promote the welfare of the Spanish Kingdom had with- 
drawn from the islands." 

In response, Aguinaldo arose, and, although he had been a few 
weeks before most bitterly denouncing the Queen and King as 
cruel monarchs, proposed their health as "the fairest and noblest 
of monarchs that had ever lived," and wished them '"long life and 
happiness." This sentiment was received with long-continued 
cheers and shouts of approval. 

This suggests this question: Can any man or child in America 
imagine for a moment George Washington, the Father of his 
Country, first agreeing to abandon the cause of liberty in the 
United States for a lump sum of 7noney given him and a few of 
his generals by the British Government and then, in the next 
place, going over to Europe, and there, at a b;mquet given in his 
honor, proposing' the health of old King George of England as 
the fairest and noblest monarch that had ever lived? Can any- 
thing more effectually dispose of such a comparison and of the 
idea of unselfishness of Aguinaldo in the present trouble with 
America, than this incident at Hong Kong, which was common 
talk at the time and witnessed by Englishmen and others, who 
were impressed by Agninaldo's forgetf ulness of his cause and 
country. 

Aguinaldo 's Relations to the American Forces. 

Third. — Now what of his coming in contact with the Ameri- 
cans? When Dewey's squadron first made its rendezvous at 
I long Kong and war seemed imminent with Spain, Aguinaldo and 
his followers sought to talk over matters about the Philippines 
with the American naval officers, but no promises or assurances 
whatever were given on either side, and Aguinaldo never thought 
Of claiming that such were made until many months later, when 
he wished to justify his conduct. Indeed, he would never have 
left Hong Kong for Singarjore and Europe, as he presently did, 
if Dewey or any one else had promised him what he later alleged. 

As it was, he soon became involved in trouble with his asso- 
ciates about the division of the $400,000. Action at law was threat- 
ened against him, and the managers of the two banks mentioned 
above were served with warnings not to deliver up the funds to 
Aguinaldo. Just as there was danger of this being brought into 
court he quietly slipped away from Hong Kong, after making 
financial preparations for a long stay in Europe. He first went 
to Saigon, about 700 miles below Hong Kong, in Erench Indo- 
China, and later took a steamer for Europe via Singapore. In 
the meantime the outbreak of war was expected at any moment. 

Upon his arrival at Singapore, in April, 1898, Howard W. Bray, 
an Englishman who had lived for 18 years in the Philippines and 
had been obliged to leave the country on account of difficulties 
with the Spanish officials, beard of his being there and went 
aboard the ship and persuaded Aguinaldo to give up his trip to 
Europe. According to the acknowledged word of Mr. Bray, 
who, by the way, was a very clever man and well known in those 
parts, he encouraged Ag-ninaldo to believe that the Americans 
would need his services and would either put him at the head of 
an independent Philippine Republic or make him a great gen- 
eral or official under American direction. In View of such hopes 
Aguinaldo gave up his voyage to Europe, and the first step was 
taken by himself and an Englishman which may have been flu- 
cause of all of America's troubles with the Eilipiuos. H;id Dray 



22() HON. JOHN BARRETT ON THE PHILIPPINES. 

not stopped Aguinaldo it is altogether probable tliere would 
have been no insurrection. 

Fourth. — When Howard W. Bray, the Englishman, who had 
taken Aguinaldo off the steamer, had secured the latter's prom- 
ise of interest in the program, he introduced him to the U. S. 
Consul-General, Hon. E. Spencer Pratt. Mr Pratt thoroughly- 
discussed the situation with Agninaldo, as any man would have 
done under the circumstances, but gave the Filipino leader no 
promises. Aguinaldo expressed a desire to g-o to Hong Kong 
and confer with Dewey before the latter sailed for Manila, and 
asked Pratt to telegraph Dewey. This was done, and Dewey sim- 
ply replied that Aguinaldo must come at once if he wished to see 
him, because he was about to sail. He did not invite Aguinaldo, 
as the wording of the telegram proves, but stated what must be 
done if Aguinaldo would meet him. 

Aguinaldo, at his own wish and the suggestion of Bray, pro- 
ceeded to Hong Kong, arriving there, however, after Dewey had 
departed. That there was no formal expectation of his coming 
or no regular arrangement to meet him at the hands of the 
American authorities is proved by his own statement that no 
one met him or showed any interest in him representing the 
United States. He conferred with his old associates, sought out 
the U. S. Consul-General, Hon. Bounsevelle Wildman, and urged 
him to assist him. Mr. Wildman distinctly told him that he had 
no authority to make him any promises or assurances, but would 
be willing to discuss matters as they stood. 

At this time I arrived in Hong Kong and was a witness of what 
followed. Nothing was done in regard to Aguinaldo's wishes un- 
til the gunboat McCulloch came up the second time from Manila 
under command of Lieutenant Caldwell, of Admiral Dewey's staff 
The night of the McCulloch's arrival Aguinaldo and his leaders 
called on Consul-General Wildman and flatly begged to be taken 
down to Cavite. At a conference of Wildman and Caldwell, which 
I attended, Caldwell stated in unreserved terms that Dewey did 
not particularly desire that Aguinaldo should come down, but 
left with Caldwell discretionary power to g'ive Aguinaldo passage 
on the McCulloch simply to return to his native land, if it 
seemed wise as matters stood at Hong Kong. 

Fifth. — Dewey had already taken to Cavite with the fleet one 
alleged Filipino leader, who had succeeded in dong nothing in 
organizing the Filipinos, and hence Dewey had no confidence in 
Aguinaldo. Finally, however, at a late hour of night in the 
conference just mentioned, after prolonged discussion, Aguinal- 
do's earnest appeals to be taken on the McCulloch prevailed. 

The next morning Caldwell, Wildman and myself picked up 
Aguinaldo and a number of his associates in the harbor from 
junks in which they had hidden themselves to escape the British 
authorities, and placed them on board the McCulloch. 

Just before she sailed I heard Caldwell say to Aguinaldo that 
he and his leaders must distinctly understand that they were go- 
ing to Cavite on their own responsibility, and that if anything 
happened to them the United States officials should be held in 
no way accountable. Aguinaldo agreed to this, and he thus pro- 
ceeded to the Philippine Islands. 

Upon his arrival in Manila Bay he was received by Dewey on 
the Olympia as he received any other strangers and with no 
special honors and absolutely no promises as to the future. It 
may have been possible, as I have elsewhere stated, that Aguinal- 
do thought from assurances given him by others, such as the 
Englishman Bray, that he was to be recognized as the head of 
an independent Filipino government and as an ally of the Uni- 
ted States, but all of us who were present at the interviews which 
took place between him and the United States officials are well 
aware that not one statement was made to him by them on which 
he could honestly base the claims and declarations made later 
when he washed to substantiate his arbitrary course in leading 
the Filipinos into a conflict with the forces of the United States. 
He was treated with the same politeness and consideration that 
would have been shown to any other enemy of Spain in that hour 
of actual war, but all the newspaper men, for instance, who were 
there, remember plainly how he commented frequently in the 
first month of his presence in the Philippines on the fact that 
he had no definite understanding with the American officials as 
to his position. 



HON. JOH BARRETT ON THE PHILIPPINES. 221 

Sixth, \\ this point it is possible to make this cardinal asser- 
tion: ti the United States could have landed at Cavite a mobile 
army force of 5,000 men simultaneously with the destruction of 
the Spanish fleet, such force would have been welcomed every- 
where by the natives and could have gone throughout the islands 
without any resistance except from Spanish garrisons. Able 
Filipino leaders like Mabini, Buencamino, Lagarda, Arrelyano 
and Macubulus often stated, before they joined hands with 
Aguinaldo, that there would have been no insurrection if the 
Americans could have landed such an arnry and so not given 
Aguinaldo opportunity and reason for the development of his 
forces and government. Fate was against the United States, 
however, this time, and this action was impossible. 

Aguinaldo Repudiated by Filipino Leaders. 

Another cardinal point to remember is this: when Aguinaldo 
landed at Cavite he was accorded no special welcome by the na- 
tives, and was so discouraged that he admitted to the captain of 
American marines in the Cavite navy yard that he would return 
at once to Hong Kong if there had been any ship going- 
there at the moment. As it was, he was obliged to remain, and, 
as a matter of self-protection, to organize some kind of a govern- 
ment and army, or prove himself an absolute impostor. Even 
then the majority of the insurgent leaders who followed him 
later as he grew strong were unwilling to accept the first dic- 
tatorship which he inaugurated. It is remarkable, as we all 
saw with our own eyes, that he aroused no enthusiasm or general 
following among the people until he began to equip an armed 
force, which awed the natives wherever they appeared. His 
cabinets were made up entirely of men selected by himself and 
not chosen by the people. To impress the masses he manufac- 
tured statements that he was backed by the United States Gov- 
ernment and its mighty power, and so must be respected, trusted 
and followed by them! 

Sere nth. — The explanation of how Aguinaldo secured an abun- 
dance of arms is simple and does not seriously involve the United 
States. In response to his earnest appeals, Dewey allowed him 
to have a few hundred stands of rifles left by the Spaniards in the 
arsenal at Cavite. This was so unimportant in Aguinaldo's mind 
later on that he often minimized its meaning to the newspaper 
men and said that these arms were a very small element in his 
success. On the other hand, the Filipinos proceeded not to at- 
tack vigorously, but to starve out the numerous Spanish garri- 
sons in different parts of the islands, until by the surrender 
of the Spaniards they secured between 15,000 and 20,000 rifles 
and a large quantity of ammunition. This salient fact must al- 
ways be borne in mind, as it explains in a moment the remark- 
able equipment at an early date of the Filipino forces. 

In the second place, there was no blockade in 1898 instituted 
along the winding Filipino coast and it was perfectly easy for 
arms to be shipped from the neighboring Chinese ports in junks 
and small steamers and sold to the Filipino forces. There was 
no difficulty in raising money among the natives to buy arms, 
and part of the funds originally paid to the Filipino leaders by 
the Spanish Government were used for the same purpose. In 
short, by the middle of the summer of 1898, Aguinaldo had not 
less than 25,000 stands of Mauser rifles and considerable quan- 
tities of ammunition. 

As to the recognition of the Filipino flag, there is a plain and 
ready explanation. In the movement of the multitude of native 
boats about Manila Bay it was necessary to watch them and see 
that they were not acting in connection with the Spaniards. That 
the boats of Filipino sympathizers might not be held up or 
stopped, Aguinaldo asked that they be allowed to fly the flag of 
his provisional government. For practical reasons Dewey per- 
mitted this, but on no occasion did he ever formally salute the 
Filipino colors or treat them as he did those of European nations 
whose men-of-wa.r were in the port. This is the sum and sub- 
stance of the alleged recognition of the Filipino flag as that of 
acknowledged allies. 



±12 HON. .roTTN ttARUEt'r ON TTItt PTTIf JPPINRS. 

Aguinaldo Responsible for Filipino Insurrection. 

Eighth: The responsibility for the first friction between the 
Filipino and the Amerieaii forces, which led to further misun- 
derstandings, rests on Aguinaldo. When General Anderson, in 
.1 une, 1898, wished to encompass Manila with the American army, 
i! was necessary to secure horses and caromatas, or conveyances, 
from the natives. In attempting to do this in a perfectly legit i- 
mate way by hiring men and their horses and carriages, he was 
met everywhere by point-blank refusals of the natives acting un- 
der orders of Aguinaldo. As there could be no delay, it was 
necessary to seize the means of transportation. Although Agui- 
naldo endeavored later to apologize for this first hostile act, it- 
developed strong feeling on both sides and was not lessened by 
his future attitude when the Americans endeavored to secure 
supplies. 

When Manila was captured there was no alternative to refusing 
Aguinaldo's forces participation in the occupation of the city, 
because their supreme thought was that of lootings the homes 
of the Spaniards and the Filipino non-combatants, the churches, 
and the public buildings. It is doubtless true that a majority of 
the Filipino leaders were opposed to such looting, but thej 
would have been powerless in the face of the ignorant inten- 
tions of the native soldiers. A joint occupation would also have 
meant misunderstanding, jealousies and possible massacres, for 
Aguinaldo and his leaders refused to acknowledge the supreme 
command of the American generals under Major-General Merritt 
as the commander-in-chief. Further friction was brought about 
by the refusal of the Filipino leaders to withdraw at first to a 
reasonable distance from the city, with the result that the Fili- 
pinos were always trying to get into the city and the Americans 
were trying to keep them out. Although it was constantly stated 
to Aguinaldo that civilized conditions of warfare required that 
the United States forces should protect the Spanish prisoners, 
the non-combatant population of the city, and the foreigners, 
and nothing definite could be settled until the United States 
and Spain had signed the treaty of peace, he kept insisting on a 
definite declaration of the purpose of the United States, which, 
under the circumstances, could not possibly be given. 

Ninlli. — Next we note the great reason why the masses of the 
people seemed willing to follow Aguinaldo's leadership and to 
distrust the Americans. The more this phase of the question 
is considered, the stronger will appear the conclusion that Amer- 
ica has not been crushing out the spirit of liberty or shooting 
government into a liberty -loving people. It will, moreover, 
demonstrate that jwe have been putting down by force a govern- 
ment established by force and encouraged by widespread, sys- 
tematic false instruction of the people about America and Amer- 
icans. 

While our limited army was occupied in guarding Manila. 
Aguinaldo was sending Filipino garrisons, well equipped with 
arms and ammunition, to all parts of the islands and compelling 
the people to acknowledge his leadership, though in the* majority 
of instances it is well known that the natives were distrustful of 
him and his troops. Had we been able to have sent American 
garrisons then, the Filipinos would have accepted American 
authority peacefully and without question. 

False Statements of American Cruelty Circulated. 

Now comes the sadaest story of all. Unscrupulous Filipino 
agitators, ex-Spanish civil servants who hated America for her 
victory over Spain, and sensational Filipino newspapers indulged 
in the most cruel and lying descriptions of the United States, her 
intentions, her government, and her people. Circulars, printed 
on the Filipino government presses at Malolos, were distributed 
broadcast throughout the interior, which said that it was the 
intention of the Americans to make the young women of the 
islands their mistresses and to take the young- men back to 
America as slaves in the place of the negroes, whom they were 
sorry to have freed! The ignorant masses in the interior who 
could not read had these stories told and re-told to them, until, 
from one end of the Philippines to the other, they believed that 
their only salvation was to follow the banner of Aguinaldo and 



BOM. JOHN BARXETT ON THE PHILIPPINES. 223 

drive the Americans from the islands. If any Filipino was found 
with pro-American circulars or papers, he was punished or his 
property was confiscated if he persisted in trying- to make the: 
truth known. 

American Overtures in the Interest of Peace. 
Tenth. — An important consideration to be borne in mind is that 
in January, 1890, just before the outbreak in February. General 
Otis strove, through the appointment of a commission, consisting 
of General Hughes, Colonel Smith and Colonel Crowder. to reach 
a permanent and peaceable understanding- with Aguinaldo and 
his leaders, and so avoid a conflict which seemed to be impend- 
ing. This commission in frequent sessions met a similar one ap- 
pointed by Aguinaldo. but the latter seemed powerless and in- 
capable of presenting- or accepting any solution of the difficulty. 
The Americans made numerous advances on most liberal grounds 
and urged that the Filipinos should be patient at least until the 
treaty of peace was ratified by the American Congress, and the 
United States would know just where it stood. The jingo spirit 
was running so rampant in the Filipino army, however, that the 
Filipino Congress was afraid to take any steps leading to a set- 
tlement, and Aguinaldo himself was fearful of losing his head 
if he took the lead in trying to reach an understanding with the 
Americans. 

Hostilities Precipitated by Filipino Attacks. 

The efforts of the commission were therefore unsuccessful, and 
there followed a series of distressing incidents which culminated 
in the outbreak of February 4. On the night of that day. Filipino 
soldiers attempted to come through the American lines after 
dark, despite an express agreement between General Otis and 
Aguinaldo. Private Grayson, a sentry of the Nebraska regiment, 
after repeatedly ordering the Filipinos to halt, shot and killed 
one of them. A company of Filipinos then immediately opened 
fire on the unsuspecting Americans, and the spark was lit which 
tired, as it were, the powder mine. In half an hour there was a 
battle raging along a line of :. , :> miles around Manila, and the 
conflict was begun which has continued intermittently until the 
present. As brave Colonel Stotsenberg, of the Nebraska regi- 
ment, said, before he. fell leading his roops in battle, the Amer- 
ican flag was deliberately fired upon by the Filipinos, and there 
could be no cessation of the conflict except that which came 
with unconditional surrender and admission of American sover- 
eignty. The responsibility, therefore, does not rest upon Ameri- 
can arms for the beginning of this unfortunate collision. 

Future Possibilities of the Philippines Under American 
Admini stration. 

Eleventh. — Imperialism is a misnomer. We are in the Philip- 
pines, to-day and engaged in subduing an insurrection as a re- 
sult" of courageously meeting our unavoidable moral responsibil- 
ities growing out of the war with Spain. We went to the Philip- 
pines, not for territory: we went to cripple the enemy. After re* 
maining there a certain period, carrying on this same war with 
Spain, new and unexpected conditions developed, which unfor- 
tunately in time evolved into a conflict with the natives. We 
must now be patient until permanent peace is established, not 
only by force of arms, but by the tangible lessons of- beneficent 
civil administration and by T he new education of the people in 
regard to America, her intentions, and her institution*. 

In due time we shall surprise the Filipinos, ourselves, and the 
world with our success in bringing about lasting peace, order, 
and prosperity if we send honest men. -elected by civil service, 
not only to adminisier the laws and government, but to lead and 
co-operate with the natives in their efforts to develop sel 
e rumen t. 

Historic written in calmer and later days will prove that we 
have not been crushing out the spirit of liberty, establishing 
government without the consent <>i the "o\ -rned. and shooting 
'v into the Filipino-, but rather that we have been put- 
ting down 1>\ force a dictatorial supported by force 
and a rebellion inspired by ambitious tenders; It will show be- 
vond question of doubt that the musses of i>eople have opposed 



224 HON. JOHN BARRETT ON THE PHILIPPINES. 

us, not from long-cherished hopes of independence from America, 
but from hostility to America and Americans bred bj- the false 
teachings of unscrupulous natives, ex-civil Spanish servants, for- 
eign juntas and sympathizers. For the conclusion of the present 
guerilla warfare we must be patient. It is the natural outcome 
of the previous trouble, and is as distasteful now to the majority 
of Filipinos as to ourselves. The apparent sympathy of peace- 
able natives with those engaged in fighting is inspired more by 
fear than by real interest; while the sole inspiration to-day of 
the leaders who are still holding out is the hope that the coming 
Presidential election in America will be determined in their favor 
by the success of the Democratic candidate. 

Twelfth. — Granting that Aguinaldo is a man of considerable 
ability and executive capacity, and granting that many of us 
spoke earnestly at one time in his behalf, while his acts were 
characterized with moderation and good judgment, we must in 
all fairness and in full knowledge of subsequent events admit 
that his course and attitude and that of his followers towards us 
and our army and navy in the later months, when we did not 
know whether we would hold the islands or not, and when we 
were wearily and longingly waiting for the verdict of Congress, 
were arbitrary, irritating, unreasonable, and calculated to in- 
spire his army and people to a conflict. There is no doubt that 
mistakes were made by American officers also, but it is as un- 
just as untrue to contend that Americans were as responsible 
as the Filipinos for the outbreak of February 4, 1898, and the un- 
happy conflict that followed. 

"While the United States officials may have erred to some de- 
gree in their treatment of the Filipinos, and while it might have 
been possible, if the wisdom of our foresight had been equal to 
that of our omniscient retrospection, to have avoided an actual 
conflict with the natives, yet, viewing the entire history of our 
presence in the Philippines, from the time Dewey destroyed the 
Spanish fleet, and could not, for physical, strategic, and moral 
reasons, sail away, up to the present wearisome season of guer- 
illa warfare, it cannot be denied, in the light of each hour as one 
event followed another, that the representatives of the United 
States did what they honestly thought was best; and that the in- 
fluences which were inspiring, directing and organizing the Fili- 
pinos were such as to make a conflict with the Americans almost 
inevitable. Everyone who was there when the outbreak came on 
February 4. 1899, especially the faithful, long-suffering men on 
the firing line, knows that it was not provoked by. the American 
forces. Since then the conflict has continued with no favorable 
influences for complete conclusion that would be both honorable 
and final. 

Thirteenth. — Men who have repeatedly travelled, officially and 
privately, through China, Japan. Eastern Siberia, Korea. Siam, 
Indo-China, Burmah, Straits Settlement. Java, and the Philip- 
pines, are unanimous in the conclusion that America cannot af- 
ford to neglect that part of the world, or weaken her new. posi- 
tion as the paramount power of the Pacific by surrendering sov- 
ereignty in the Philippines — a sovereignty which has come to us 
as a just reward in the arbitrament of war, and not as a prize and 
conquest. The possession of the latter is absolutely indispensa- 
ble to the full appreciation of the general Asiatic opportunity. 
To withdraw f > om the Philippines now would be like removing 
the hub and expecting the wheel to stand. 

Before Dewey's victory the United States was everywhere re- 
garded in Asia by the governing classes and by the common peo- 
ple as a secondary power. Our commerce and our influence were 
hampered and checkmated. The achievement of May 1. 1808, 
and the consequent occupation of the Philippine Islands, made 
America actually respceted and treated as a first-class power for 
the first time in the history of our relations with Asiatic nations. 

In our new possessions, however, our supreme duty is moral, 
not commercial. We must give the people better government, 
more honest administration, freer institutions, wiser *aws, free- 
dom of religious worship, good schools, and encourage them to 
develop as large a degree of autonomy as they shall prove them- 
selves capable of maintaining'. Civilization may bring vices as 
well as virtues, but we must employ every legitimate method to 
make the latter strong enough to destroy the poison of the for- 
mer. 



MR. BRYAN'S 1896 ASSERTIONS— HAVE 
THEY STOOD THE TEST OF FOUR 
YEARS? 

In view of the fact that Mr. Bryan is starting 1 out with a new 
series of assertions, coupled with a reiteration of most of his old 
ones, it is interesting to examine some of those made four years 
ago and see whether the developments since they were made 
prove that they were accurate or otherwise. The quotations from 
his speeches which follow are taken from his own book, "The 
First Battle," and may therefore be accepted as accurate. 

"Prices Certain to Fall under a Gold Standard." 

"If we have the gold standard prices are- as certain to fall as the stone 
which is thrown into the air."— At Newton, la., August 8, 1896. 

When Mr. Bryan made this assertion, on August 8, 1896, the 
highest price of wheat in New York was, as shown by the offi- 
cial reports of the Bureau of Statistics, 68 cents per bushel. On 
June 21, 1900, the highest price of the same grade in the same 
market was 92% cents per bushel. The highest price of corn on 
August 8, 1896, was 30% cents per bushel, and on June 21, 1900, 
47% cents; oats at the date of the above statement were in the 
same market 23% cents per bushel, and June 31, 1900, 28y 2 cents: 
lard at the date mentioned was in the New York market 3% cents 
per pound, and on June 21, 1900, 6.9 cents per pound, or practi- 
cally double. Mess pork on August 8, 1896, was $8.75 per barrel, 
on June 21, 1900, $12.50 per barrel; beef, family, in the New York 
markets at the date of Mr. Bryan's nomination was $9 per barrel, 
and on June 21, 1900, $12 per barrel. Ohio XX wool on August 8, 
1896, the date of the above assertion, was in the New York mar- 
ket 17 cents per pound; on June 1, 1900, it was 30y 2 cents per 
pound. Silver at the date of Mr. Bryan's above assertion was in 
the New York market and the markets of the world 69.1 cents 
per ounce, and on June 23, 1900, 60.9 cents per ounce. Thus it 
appears that instead of prices being "as certain to fall as the 
stone which is thrown into the air," the prices of all articles of 
farm produce have risen, and apparently the only article which 
has fallen in price is silver. 

Prices Must Fall under the Scramble for Gold." 

So long as the scramble for gold continues prices must fall, and a gen- 
eral fall in prices is but another definition for hard times."— Speech of 
acceptance at Madison Square Garden. 

Presumably "the scramble for gold" has continued in view of 
the fact that countries whose aggregate population is nearly 
500,000,000 have adopted the gold standard since this statement 
Avas made; yet as shown by the above paragraph, prices, instead 
of falling, have advanced in every case except that of silver. 

Railroad Rates and Falling Prices. 

"Railroad rates have not been reduced to keep pace with falling prices. 
The farmer has thus found it more and more difficult to live. Has he 
not a just complaint against the gold standard?"— Speech at Madison 
Square Garden. 

The average annual price of wheat per bushel, as shown by the 
official reports of the Department of Agriculture, was in 1870,94.4 
cents, and in 1899, the latest year for which the annual average can 
beobtained, was, according to the same authority, 58.4 cents, a fall 
of 38 per cent. The official reports of the New York Produce Ex- 
change show that the freight rates on wheat from Chicago to 
New York by lake and rail and canal averaged in 1870 17.11 cents 
per bushel, and in 1899 6.65 cents, a fall of 60 per cent, while in 
other articles of farm production the relative fall in freight rates 
has been equally in proportion to prices. 

"The Crusade Against Silver Must Lower the Value of All 
Other Property." 

"Any legislation which lessens the world's stock of standard money in 
creases the exchangeable value of the dollar; therefore the crusade 
against silver must inevitably raise the purchasing power of money and 
lower the money value of all other forms of property."— From Madison 
Square Garden speech, accepting nomination. 

8 225 



226 BRYAN'S 1806 ASSERTIONS. - ~ 

What Mr. Bryan terms the "the crusade against silver" has 
continued since 1896. Japan, with 40,000,000 population, has 
adopted the gold standard, as have also Russia, with 125,000,000 
population, and India, with 300,000.000 population. Yet, instead 
of "the money value of all other forms of property" being- low- 
ered, there has been a general increase, notably in the United 
States. For instance, the official reports of the Department of 
Agriculture show that the horses in the United States, which 
numbered over 15 millions in 1896 and but 13y 2 millions in 1900, 
have since the former date increased in value from $500,140,186 
to $603,969,442, or more than $100,000,000 increase in value, while 
the number has been reduced 1% millions. The value of sheep 
m the Lnited States in 1896 was $65,167,735 and on Januarv 1, 
1900, $122,665,913, or double the value at the date of Mr. Bryan's 
announcement that 'the crusade against silver must lower the 
money value of all other forms of propertv." Taking into con- 
sideration all farm animals, their value in 1896 was $1,727,926,0S4. 
and on January 1, 1900, $2,212,756,578— a gain of practically $500,- 
000,000 in value of the animals on farms during the four years 
m which the "crusade" has continued. 



Failures and the Gold Standard. 

"It is only necessary to note the increased number of failures in order 
to know that a gold standard is ruinous to merchants and manufacturers." 
—Speech at Madison Square Garden. 

• 

The gold standard has continued in force since this assertion, 
yet Dun's Review, which showed that in the year in which this 
utterance was made the number of failures in the United States 
was Jo. OSS and the liabilities $226,096,534. now shows that in 1899 
the number of failures was but 9,337 and the amount of liabilities 
only S90,S79,SS9, or but 40 per cent of the liabilities of the year 

Permanent Investments and the Gold Standard. 

"Those who hold as permanent investment the stork of railroads and of 
other enterprises are injured by a gold standard. The rising dollar 
destroys the earning power of these enterprises without reducing their 
liabilities, and. as dividends cannot be paid until salaries and fixed 
charges have been satisfied, the stockholders must bear the burden." - 
Speech at Madison Square Garden. 

The gold standard has continued since this assertion was 
made, yet Poor's Manual shows that the dividends paid on rail- 
way stocks in 1896 were but $81,528,154 and in 1898 $94,937,526^ 
an increase of 13% million dollars over the year in which this as- 
sertion was uttered. The exact figures for 1S99 are not yet avail- 
able, but are known to be in excess of those of 1898. 



The Dollar and the Payment of Debts. 

"What shall it profit us if in trying to raise our credit by Increasing the 
purchasing power of our dollar, we destroy our ability to pay the d^Ms 
already contracted by lowering the purchasing power of the products 
with which those debts must be paid?"' — Speech at Madison Square Gar- 
den. 

The "products with which those debts must be paid" are the 
articles of farm production, products of the mine and forest, and 
labor. The official report of the Bureau of Statistics show, as 
indicated in the opening' paragraph of this statement, that the 
value of all classes of farm production have increased instead of 
being lowered. Official reports to the American Iron and Steel 
Association show that the selling price of pig iron, a product of 
the mine, has practically doubled since the year in which this as- 
sertion was made, while every workingman knows that prices of 
labor have greatly advanced since 1S96. As a result, in Mr. 
Bryan's own State "the payment of debts already contracted" 
instead of being lowered has been greatly facilitated, the mort- 
gages released in the State of Nebraska, which in 1S96 amounted 
to but $18,213,382, having been in 189S $27,49S,070 — an increase 
of 50 per cent in debt payments. In the three fiscal years 1SP8, 
1899 and 1900 the excess of exports over imports was $1,689,778,- 
790, against $356,809,222 in the years from 1790 to June 30, 1S97. 
as shown by the official report of the Chief of the Bureau of 
Statistics. 



BRYAN'S 1896 ASSERTIONS. 227 

Production of Gold and Silver. 

"Gold and silver are different from other commodities in that they are 
limited in quantity. * * * Because gold aud silver are limited both in 
the quantity now in hand and in annual production, it follows that 
legislation can fix the ratio between them."'— Madison Square Garden 
speech. 

In the year in which Mr. Bryan made this assertion, 1896, the 
gold production of the world was $202,251,600; in the year 1900, 
tour vears later, the world's gold production, according- to the 
estimate of the Director of the Mint, will be over $400,000,000, 
or double that of the year 1S96; while for the year 1899 it was 
$315,000,000. having- increased more than 50 per cent during- three 
wars' time. Thus, the production of g-old, although "limited 
both in quantity now in hand and in annual production," has 
doubled in the short four years since this assertion was made, 
while in the half century just ending- the gold production of the 
world has been $6,596,832,000, against $3,128,390,000 in the pre- 
ceding- 350 years. It is largely due to the fact that gold produc- 
tion instead of being "limited" has doubled and trebled and quad- 
rupled in the last few years that the world is willing to abandon 
the double and consequently fluctuating standard and accept the 
single metal, whose rapid advance in production makes it suf- 
ficient for the basis of the world's money. 

"No Provision for an Increase of Currency to Keep Pace with 
Increase of Population. " 

"Senator Sherman on June 5, 1890, said that it would require $42,000,000 
increased circulation each year to keep pace with the increase in popula- 
tion. What provision has the Republican party made for the supply of 
the money that we need? None whatever."— Speech at Greensboro, N. C., 
1S'J6. 

At the date of this assertion by Mr. Bryan, August 1, 1896, tlv 
money in circulation in the United States was, according to the 
official reports of the Treasury Department, $1,514,903,142, of 
which $484,587,423 was gold coin and certificates. On August 1, 
1900, just four years after that date, the amount of money in 
circulation in the United States was $2,087,353,408, of which $329,- 
051,517 was gold coin and certificates, showing an increase in cir- 
culation (under Republican legislation then on the statute books 
and recently strengthened) of $572,450,266 in total circulation and 
$:;i 5,364,094 in gold alone— or an average increase of $143,000,000 
per annum in total circulation and of $S6,000,000 in gold coin and 

certificate*. 

"No Prosperity until the Gold Conspiracy is Stopped." 

"We honestly believe that there can be no permanent, no general pros- 
Parity in this country until we stop the conspiracy of those who would 
make gold the only standard of the world."— Speech at Rhinebeck, N. Y., 
August, 1896. 

In 1896, when this assertion was made, the deposits in savings 
banks in the United States amounted to $1,907,156,277, and de- 
spite the fact that gold has continued the standard, the "general 
prosperity" has so developed that in 1899 the deposits in savings 
banks were $2,230,366,954 — an increase of $323,000,000, or over 100 
millions per year. The above figures are taken from the official 
reports of the Comptroller of the Currency. 

Mills and Mints. 

"Some of our opponents tell us that we should open the mills instead 
of the mints. Of what use are mills unless the people can buy what the 
mills produce? And how can the mills be operated so long as those who 
produce the wealth of the country are not able to make enough out of 
their products to pay taxes and interest? There is no more effective way 
to destroy the market for the product of the mills than to lower the price 
of the farmers' crops."— Speech at Kansas City, 1896. 

The mills having been opened despite Mr. Brj'an's insistence 
that it would be useless, the wheat retained for home con- 
sumption by those whose employment was thus in- 
creased averaged in 1S99 practically 6 bushels per capita, 
against 3.88 bushels per capita in the fiscal year 1897, 
which had just been entered upon when Mr. Bryan 
made this assertion. The consumption of raw cotton per 
capita in the United States in 1899 was 27.14 pounds, against 



228 BRYAN'S 189G ASSERTIONS. 

18.4 pounds in 1896, thus showing that the "opening of the mills" 
created a largely increased home market. The official reports 
of the Department of Agriculture show that the value of corn, 
wheat, oats, rye and barley produced in the United States in 1899, 
with the mills open everywhere and in many cases running 
on double time, was $222,000,000 greater than in 1896, when the 
mills were closed, while the value of farm animals was nearly 
$500,000,000 greater on January 1, 1900, than on January 1, 1896. 

Regarding Control of Conventions. 

"I venture the assertion that never before in the history of this coun- 
try have the voters themselves had so much to do with a convention 
as did the voters of the Democratic party with the convention at Chi- 
cago."— Asheville, N. C, speech, 1896. 

This is in marked contrast with the convention of 1900, in 
which Mr. Bryan and the silver trust, without any reference to 
the "consent of the governed," actually and absolutely dominated 
the convention to the extent of complete dictation as to its 
declaration of principles. 

Political Machines and Political Bosses. 

"It is often the case that the party machinery or bosses have more to 
do with shaping the policy and making the nomiuation than the voters 
themselves. I am proud to be the nominee of a convention which repre- 
sented no machine and no bosses."— Speech at Asheville, N. C, 1896. 

Comment on the above, in view of the history of the Kansas 
City Convention, is unnecessary. 

"The Rising Dollar." 

"Every nation which goes to the gold standard makes the dollar dearer 
still, and as the dollar rises in value you must sacrifice more of all the 
products of toil in order to secure it."— Speech at Baltimore, Sept. 19, 1896. 

As already shown, nations whose population aggregates nearly 
500,000,000 have gone to the gold standard since the above asser- 
tion was made, and the fact that labor in every line of industry 
now commands a higher price than in 1896 shows effectually and 
completely the inaccuracy of this assertion. As has been already 
shown, the prices of products of agriculture, mining and of labor 
have greatly advanced since the above assertion was made, de- 
spite the fact that countries whose population aggregates one- 
third of the population of the world have gone to the gold stan- 
dard meantime. 

The Terrors of the Gold Standard. 

"The gold standard means dearer money; dearer money means cheaper 
property; cheaper property means harder times; harder times means more 
people out of work; more people out of work means more people desti- 
tute; more people destitute means more people desperate, and more 
people desperate means more crime."— Speech at Minneapolis. 

Not one of these doleful predictions has been verified, but 
on the contrary the reverse is true in every case. 

The Gold Standard and the Masses. 

"The gold standard has never been supported by the masses. It has 
never received the endorsement of the creators of wealth."— Speech at 
Minneapolis. 

In less than sixty days after this assertion was made the gold 
standard was endorsed and supported by a larger number of 
votes than ever before cast for any proposition in the United 
States, the plurality of votes cast against Mr. Bryan and bis 
silver cause being also greater than in any preceding election, 
except that against Greeley in 1872. 

Abandoning the Farm for the City. 

"There is another reason why the people have gone into the city and 
left the farm. It is because your legislation has been causing the fore- 
closure of mortgages upon the farms. * * * I cannot understand 
how a man living upon a farm can be deluded with the idea that the gold 
standard has anything but misery and suffering for him."— Speech at 
Monmouth, 111. . - ;_'.'_i-!_. 



BRYAN'S 1896 ASSERTIONS. 229 

The gold standard has remained in operation since this asser- 
tion, yet the condition of the farmers has been in the four years 
since that time vastly improved, as shown by the value of farm 
products already quoted; while the speed with which the mort- 
gages complained of have been paid off is illustrated by the fig- 
ures for Mr. Bryan's own State, which show an increase of 50 
per cent for the State of Nebraska alone in the value of mort- 
gages released in 189S as compared with 1896. 

"They Cannot Find the Gold to Serve as the Foundation." 

"Our opponents are trying to construct a commercial fabric resting upon 
gold when they cannot find the gold to serve as the foundation for the 
fabric."— Chicago speech to business men. 

When this assertion was made the gold coin and gold certifi- 
cates in circulation in the United States amounted to but $484,- 
587,423, while on August 1, 1900, the amount had increased to 
$829,951,517. On the other hand, the gold production of the 
world has, during the short four years since the above assertion 
was made, amounted to over a billion dollars, or nearly as much 
as in the century from 1750 to 1850. 

Bimetallism and Business Failures. 

"Bimetallism appeals to the business man because business failures 
everywhere testify to the fact that the merchant cannot sell when the 
people are not able to buy."— Speech at Ottumwa, la. 

The record of business failures at the date of this assertion 
and in subsequent years has already been quoted above. The 
figures show a reduction in number from 15,088 in 1896 to 9,337 
in 1899, and in liabilities from $226,096,834 in 1896 to $90,879,8S9 
in 1899, and all of this without bimetallism.. 

Bimetallism and the Wage Earner. 

"Bimetallism appeals to the wage earner because it makes it more 
profitable to invest money in enterprises and in the employment of labor 
than to lock it up in the vault and gain the rise in value of dollars. Bi- 
metallism appeals to the laboring man and particularly to the working- 
man, and we point to the fact that in all the times past laboring men 
have been more prosperous when two jobs of work were looking for one 
man than when two men were looking for one job of work." — Speech at 
Ottumwa, la. 

The fact that more money has been invested in business enter- 
prises of manufacturing since this assertion than ever before in 
an equal length of time and that laboring men were never more 
prosperous or had a greater number of jobs looking for one man 
than to-day makes the "appeal of bimetallism" decidedly less at- 
tractive to the wage earner in 1900 than in 1896, when this asser- 
tion was made. 



The liberators will never become the oppressors. A self- 
governed people will never permit despotism in any govern- 
ment which they foster and defend.— President McKinley be- 
fore Ohio Society of New York, Mar. 3, 1900. 

As it was the nation's war, so are its results the nation's 
problem. Its solution rests upon us all. It is too serious to 
stifle. It is too earnest for repose. No phrase or catchword 
can conceal the sacred obligation it involves. — President Mc- 
Kinley before Ohio Society of New York, Mar. 3, 1900. 

The nation has appreciated the valor and patriotism of the 
black men of the United States. They not only fought in 
Cuba, but in the Philippines, and they are still carrying the 
flag as the symbol of liberty and hope to an oppressed people. 
— President McKinley to colored citizens, at Chicago, Oct. 8, 
1899. 

We did not go there to conquer the Philippines. We went 
there to destroy the Spanish fleet, that we might end the war; 
but in the providence of God, who works in mysterious ways, 
this great archipelago was put into our lap, and the American 
people never shirk duty. — President McKinley at Bedfield, 
S. D., Oct. 14, 1899. 



230 BRYAN AND FREE SILVER. 



"THE PROCESSION MOVES ON WITH THE REPUBLICAN 
PARTY AT ITS HEAD." 



(Extracts from remarks of Hon. H. R. Gibson, of Tennessee, in Daily 
Congressional Record, December 15, 1899.) 



Bryan and his apostles of free silver and free trade preached 
three years ago that if McKinley was elected and the gold stand- 
ard maintained there would be an awful dearth of money; that 
greenbacks, national-bank notes, silver certificates, and silver 
dollars would all disappear, and that no money would be left 
but gold, gold, gold, and that nobody would have any of that but 
the bankers, the millionaires, the "goldbugs," the "robber 
barons," and the "bloated bondholders;" that the poor man 
would never see a gold piece, not even if his eyes were sore, and 
that a few gold men would be the kings of the land and all the 
balance of the people no better than serfs and not as good as 
slaves. 

And yet what do we find as the fact? Instead of the pre- 
dictions of Bryan and his free silver apostles proving true, 
they have proved to be totally false. Instead of money be- 
coming scarce it has become far more plentiful, so that the 
amount now in circulation is about two thousand milion dol- 
lars, one-half of which is gold, and the other half paper money 
and silver, thus giving us more money to the man than we 
have ever had since Columbus discovered America. 

Four years ago the gold money in the United States amounted 
to five hundred and ninety-seven millions, whereas to-day the 
amount is over one thousand millions, and the larger proportion 
of it is in actual circulation, whereas four years ago most of our 
gold was locked up in the banks or hoarded secretly by the few 
lucky holders. 

In the last four years the money in the hands of the people 
has increased $620,0000,000, and the amount is increasing every 
day and will continue to increase as long as honest money and 
honest men are in the land. 

To show the stupendous increase in the business of the United 
States I call attention to the clearing-house reports which show 
that their business for 1896 aggregated thirty-seven thousand 
million dollars, while their business for 1899 aggregates sixty- 
nine thousand million dollars; so that for every $100 paid in IS'.tu 
$186 were paid in 1899, thus showing that the business of our 
country to-day is nearly twice as great as it was when McKinley 
was elected President. 

Another unerring evidence of the enormous increase of busi- 
ness is the fact that money orders issued by the post-offices of 
the United States has increased more than $2*0,000,000 a year. 

The Agricultural Department estimates that the value of farm 
animals in the United States has increased in the last two years 
$342,000,000, which is just that much more in the hands of our 
farmers. 

And, wonder of wonders, we are now shipping to foreign lands 
more than $1,000,000 worth of manufactured goods every day in 
the year, our total exports amounting to over one thousand mil- 
lion dollars for this good year of 1S99. 

And all this marvelous growth has been accomplished while 
William Jennings Bryan and his horde of Democratic politicians 
have been going to and fro in the earth and up and down in it, 
preaching 16 to 1 and filling the land with predictions about 
the tremendous appalling calamities sure to come upon the 
country because of the gold standard and the protective tariff 
of the Republican party. The Democratic politicians howl and 
bark, but the procession moves on all the same with the Re- 
publican party at its head and McKinley as its great captain. 



IMPROVED BUSINESS CONDITIONS. 



231 



Record of Failures and Liabilities in the United States, 1876 

to 1900. 

The following table shows the commercial failures and average 
of liabilities in each year from 1876 to 1900, being taken from 
Dun's Review, which was widely quoted by Democrats and Popu- 
lists in 1896; it is a striking comment upon Democratic adver- 
sity and Republican prosperity. It will be seen that during the 
Democratic and low tariff period, 1893-6, the number of failures 
increased 50 per cent and the amount of liabilities doubled and 
even trebled. The amount of liabilities of the failing firms in 
1892, the last year under President Harrison was but $114,044,- 
167, and in 1893, the first year of the Democratic period it was 
$346,779,889, and in 1896, the last year of the Democratic and 
low tariff period it was $226,096,834; while it dropped to $154,- 
332,071, in 1897, in the middle of which year the Dingley pro- 
tective tariff was enacted, again dropped to $130,662,899 in 1898, 
and to $90,879,889 in 1899. Thus the liabilities of failing firms 
in 1899 were less than half those of the closing year of the 
Wilson tariff and a little more than one-fourth those of the 
first year of the Democratic low tariff period. Indeed no year 
since 1881 shows as small liabilities of failing firms as does the 
year 1899. 

Commercial failures and average of liabilities, 1876-1899. 
[From Dun's Review, New York.] 







Total for the 


year. 




Calendar year. 


Number 
of failures. 


Number of 
business con- 
cerns. 


Perct. 
of fail- 
ures. 


Am on lit of 
liabilities. 


Average 
liabilities. 


1876 


9.092 
8,872 

10.47X 




$191,117,786 
l<)0.0li'.l.'.i.:i» 
234,388,182 

9x,H'.i.o>.; 
65,752,000 
81455,932 

101.547.564 

IT2,S7ia72 
226,848,427 
I24.220v32t 
114,644.119 

107,560,911 
12-i.x29.97:; 
1 LX.7X4,:;:;7 

ix!i.x;,o.!m;i 

IX9.86S.68X 

111.041,167 

340.779. S89 

173.09-3.85tt 

173.19tt.QttO 

33G.09tt,834 

1U,3' 12.071 

i.;0.6li2.x99 

w&mm 


-21.020 
21,491 


1877 






1878 






•'•\:;ii!i 


1879 


6,658 
4,735 
5,582 
6,788 
9.184 

10,968. 

io,ii.;7 

9,884 

9*684 

10.079 

10,8X2 

10.907 

12.27;; 

10,344 

15,243 

13,885 

13.192 

15.088 

13,351 

12.1X6 

9,337 


702,1)7 
746,S23 
7X1,689 
822,256 
Xlvi.99;; 
90 1.759 
919,990 
969^41 

*mm 

1.040.602 

L05U40 

l,110,->9() 

1,112,9)1 

1,172.70 > 

1,103.113 

1,114.174 

1,309.!I82 

1.151,519 

1,058.521 ' 

1,103,830 

1,147,595 


0.9. 

.<;:; 

.71 

.X2 
1.06 
1.21 
1.1H 
1.01 

.!H) 
1.02 
1.04 

.98 
1.07 

.XX 
1/48 
l.-M 
1.09 
1.31 
1.26 
1.10 

.81 


14.711 


1880 


18,886 


1881 d 

1882 


14,580 
15,070 


\m\ 


JS.S23 


ISM 


20,682 


1885 


11.67X 
11,651 


1886 


1887 


17.;;!)" 


1888 


11. :.!>■-. 
13.672 
17,406 


1889 


1X!HI 


1891 

1892 

1893* 

1894* 


15.471 

11.02> 

^'i.751 

13.458 

13.134 

14,999 

11,559 

10,72''. 


1895* 


1896* 


1897 


1898 


1899 


9,783 







* Democratic and low-tariff period. 

Clearing-House Eeturns in the United States and in New York 

City. 

Clearing-house returns are perhaps the most accurate barome- 
ter of business conditions accessible in other than census years, 
and the fact that reports of the transactions of the clearing- 
houses of the United States have been compiled since 1886, and 
those of New York City, its great business center, since a much 
earlier date enables us to present data by which to compare 
business conditions during the years in question. It will be 
seen by an examination of the table that the business of the 
New York clearing-house averaged during the Democratic years, 
3885-1888, but 30,000,000,000 a year, against an average of more 
than $10,000,000,000 per annum in the preceding four years. The 
reports of the clearing-houses of the United States for the ear- 
lier years are not accessible, and it is not practicable therefore 
to compare the Democratic period, 1885-88, for the whole country 
with that of preceding years, though the fact that the years 
immediately following it showed a large increase in the bnsi- 



232 



IMPROVED BUSINESS CONDITIONS. 



■ 



n ess of the clearing-houses of the country as a whole suggests 
that they doubtless shared in the depression which is plainly 
shown in the column which gives the returns of the New York 
clearing-houses. For the Democratic and low-tariff period, 1893- 
9G the reduction in clearings both in New York and the 
country at large is very strongly marked, the average for the 
four years, 1893-96, for the entire country being $51,000,000,000 
a year against $65,924,000,000 in 1898, and $88,909,000,000 in 1899. 
The total for 1899, it will be observed, is practically double that 
of the calendar year 1894, the year in which the Wilson low 
tariff law was put into operation. 

Clearing-house returns of the United States, showing depression in low-tariff 

and Democratic years. 

[From the Statistical Abstract of the United States.] . 



Year. 



1881. 
1882. 
1883. 
1884. 
188-5. 
1886. 
1887. 
1888. 
1889. 
1890. 
1891. 
1892. 
1893f 

imt 

1895\ 

1896f 
1897. 
1898. 



New York 
clearing 
houses. 



Clearing 
houses of the 
United States. 



$37,182,128,621 
48,565,818.212 
46,552,846,161 
40,293,165.258 
34,092,037338; 
25,250,791,440 
33,374,682,216 
34,872,848,786! 
30,863,686,609 
34,796.465,529 
37,660,686,572; 
34.053.698.770 : 
36,279,905,236* 
3 ',,',21,380^70 
3^230,11,5,368 
28, 26 /,, 37 9, 126 
29,350,80 ^,881, 
31,337,760,948 
39,853,413,948 
57,368,230,771 



(*) 

(*) 

(*) 

(*) 

(*) 

(*) 
$48,211,643,771 
52,126,704,488 
48,750386,813 
53.501,411,510 
58,845,279,505 
57.298,737,938 
60,883,572.438 
58^80,682,^5 
! f 5/m,/,96,7/ f 6 
50,975,15501*6 
51,935,651,733 
54,179,545,030 
6-5,924,820,769 
88,909,661,776 



* No data. 

f Democratic and low-tariff years. 

Bank Operations as an Evidence of Business Conditions under 
Democratic and Republican Administration. 

The accompanying table gives a bird's-eye view of business 
conditions in the United States from 1890 to 1899, as shown 
by the bank clearings and the total "banking funds," which 
term includes in this case the capital, surplus and deposits of 
reporting banks and the average of these funds per capita. 
Attention is called to the reduction in bank clearings and in 
the per capita of banking funds in 1893, 1894, 1895 and 1896 as 
compared with the last year under a Republican president and 
protective tariff and the phenomenal increase in 1898 and 1899 
under a return to Republicanism and protection. 



Capital, surplus and deposits of National and other reporting banks, on or 
about June 30, 1890 to 1899, inclusive, the average of these funds per 
capita, and annual volume of exchanges of the clearing houses of the 
United States for the same period. 

[From reports of the Comptroller of the Currency.] 



Year. 


*Population. 


Banking 

funds. 


Average 
per capita. 


Clearings. 


1890 


62,480,540 
64,156300 
65393,000 
67,021,000 
68,473,000 
69,954,000 
71,468,000 
73,016,000 
74,654,000 
76,266,000 


$5,613,747,167 
5340,438,191 
6,390,094,128 
6,412,939,954 
6,407,003338 
6,703,544,084 
6,695,486,521 
6,822,326,870 
7,416355,568 
8,512,300,108 


$89.85 
91.03 
97.42 
95.68 
93.57 
95.83 
93.69 
93.43 
99.34 

111.61 


$58345,279305 


1891 


57,298,737,938 


1892. .. 


60,883372,438 


1893 


58380,682,455 


1894 


45,028,496,746 


1895 


50,975,155,046 


1896 


51,935,651,733 


1897 


54.179345,030 


1898... 


65,924320,769 


1899 


88.909,661,776 







*Estimated by the Government Actuary except for 1890. 



IMPROVED BUSINESS CONDITIONS. 



233 



Savings Banks. 
Two interesting- tables, with reference to saving's banks, are 
herewith presented. The first shows the number of banks, num- 
ber of depositors, amount of deposits, and average amount due 
each depositor, from 1820 to 1899. It will be seen that the de- 
posits in savings banks fell off $33,000,000 in 1894, as compared 
with 1893, the first year of the Democratic low tariff period, 
and in 1899, were $323,000,000 greater than in 1896, the last year 
of Democratic rule. The second table shows the number of de- 
positors and amount of deposits in savings banks in the prin- 
cipal countries of the world and suggests some interesting facts 
for those who are inclined to be dissatisfied with conditions in 
the United States. The list includes practically all the import- 
ant countries of the world and shows that the deposits in sav- 
ings banks in the United States are double those of any other 
country in the world, and the average deposit, by patrons of 
savings banks in the United States, is larger than that of any 
countrv named in the list. 



Number of savings banks in the United States, number of depositors, amount 
of savings deposits, average amount due each depositor in (lie pears 1820, 
1825, 1835, 1840, and 1846 t<> 1899, and average per capita in the United 
States in the years given. 

[Complied in the office of the Comptroller of the Currency.] 



Year. 



1820.. 
1825*. 
1830.. 
1835.. 
1840.. 

1845.. 

1846.. 
1847.. 
ISIS.. 
1849.. 
1850.. 
1851.. 
1862.. 
, 1858.. 
1854.. 
1855.. 
1856.. 
1857.. 
1858.. 
185ft. 

I860.. 
1*01.. 
1862.. 
1888.. 
1864.. 
1865.. 
1866.. 
1867.. 
186a. 
1869.. 
1870.. 
1871.. 
1872.. 
1878.. 
1874.. 
187.3.. 
1876.. 
1877.. 
1878.. 
1879.. 
1880.. 
1881.. 
1882.. 
1883.. 
1884.. 
1885.. 
1886.. 
1887.. 
1888.. 



1800. 
1891. 
1892. 
1898. 
1894. 
1895. 
1896. 
1897. 
1898. 
1899. 



N n m ber N u i n l terof 
of banks depositors 



]() 
15 
36 
92 

61 
70 
74 

76 

m 

90 

his 
128 
HI 
159 
190 
•J 1 5 
«»2 
281 
245 
259 
278 
285 
289 
298 
805 
817 
386 
871 
406 
476 
517 
577 
647 
669 
093 
771 
781 
675 
668 
639 
629 
629 
629 
630 
636 
046 
638 
684 
801 
840 
921 
,011 
,059 
,030 
,024 
1117 
^.)H8 
980 
979 
987 



8335 
16,931 
38,085 
60,058 
78301 
1 45,21 Mi 
168,709 
187,739 

l!i! 1.701 

217,818 
251,354 
277448 

308,863 
865338 

806.178 
481.602 
487,986 
490,428 

022356 
698,870 
694,487 
787,943 

976,025 
980^44 

1.007.061 
1.LSS.202 
1,810.144 
1 466,684 
1.080.846 
1 '102.047 
1,992,925 
2.L^5.s82 
2,293,401 
2,359,864 

2395,314 

2.400.78-5 
2,268,707 

2.885.582 
2.528.74H 
2.710.854 
2,876,438 
8.015.151 
8.071.405 
8.158.050 
8.418.018 
3,838291 
4.(21,528 
4.258.808 
4,533217 
4.781.005 
4,830,599 
4,777,687 
4,875,519 
5,005.494 
5,201 ,182 
5,885,740 
5,087,818 



Deposits. 



Lveraee ANtia! - e 

due e-u-h I >er ea P- 
' '^i'. 1 ' itainthe 

''V , United 

101 • states. 



&1438376 
2,537,082 

0.H78.8O1 
10.018.720 
14.051,520 
21.500.077 
27374326 
81.027.497 
38,08 

80.078.024 
48.431,180 

.50.457 JO 8 

5H.407.4 ".8 

72313396 

77323,906 

84290/176 

95,598230 

98,512,968 

108,438287 

128357301 

149277304 

146,729382 

lllli.484.540 

206235202 

280.280.401 

242.OlH.8s2 

282455,794 

887.009,452 

392,781313 

457.075.050 

549374358 

O50.745.442 

735,046305 

802363309 

864366302 

924337304 

942350255 

866218306 

879397306 

802,41*0.425 

811I.100.H78 

801. 061 .142 

960,797381 

1.024X56.787 

1373294355 

1395472247 

I44I330378 

1235247371 

1304490550 

1,425230349 

1324344306 

1.028.0711.749 

1.712.709.020 

1.7,8-3.150,957 

1,747361280 

1310397323 

1307456277 

1339376365 

236538] ,298 

2230300,954 



1 19.84 
183.09 

170.72 
178.54 
168.77 
172.4S 
108.40 
165.63 

105.110 
172.7S 
18246 

I H-2.51 
197-82 

II tO.l 4 
IH.3.20 
105.1KI 
200-87 
201.24 
206.66 
215.18 
211.27 
215j03 
282.48 
242.08 
247.85 
204.70 
283-03 
299.80 
812.04 
887.17 
842.18 
868.82 
867.07 
876.H8 
391-56 
807.42 
361j63 
866,50 
85:;.72 
350.71 
852.78 
850.70 
856.29 
8-55.96 
35656 
861.86 
801.89 
8.5-3.41 
354.40 
858.08 
858.01 
358.20 
800.-5-3 
86.5.86 

37 1.36 
876.-50 
872.88 
383.54 
392.13 



-0.12 
.-_>. ; 
."4 
.72 

32 

1.2; 
1-38 

1.-30 
1.52 
1.60 

1-87 

2.10 
2.40 

2.94 
S30 

8.40 
8.41 
8.64 
4.21 
4.75 
4-58 
5.18 
6.18 
0.91 

6.98 

7.96 
0.8 1 
]0.o2 
12.12 
14.26 
10.45 
18.11 
10.2-3 
20.20 
21.24 
20.86 
18.69 
18.49 
16.42 
16.33 
17.38 
18.42 
10.09 
19.55 
10.51 
19.89 
21.05 
22.75 
2325 
24.83 
2529 
26.11 
26.63 
23.53 
2.3.88 
26.68 
26.56 
27 67 
29.24 



234 



IMPROVED BUSINESS CONDITIONS. 



Depositors, amount of deposits, and average deposit in all savings banks, popu- 
lation of the countries, percentage of popidation who are depositors, and 
average deposit per inhabitant, 1895. 

[From reports of the Comptroller of the Currency.] 



Year. 



Austria 

Belgium 

France 

Hungary 

Italy 

Netherlands 

Norway 

Prussia 

Sweden 

United Kingdom 

Australasia 

Canada 

Cape Colony 

Crown colonies, other. 
United States 



Total. 



Number of 
depositors. 



3,924,902 

1,145.408 

8,986.631 

995,397 

4,137,908 

749,024 

540.053 

6,255,507 

1.460358 

7,969.826 

894,879 

175,560 

50461 

114,491 

4,875,519 



45,796,767 



Deposits. 



Average, 
deposit. 



$658,921 ,560 
113,500,080 
829,783,735 
226,151,760 
331,330,100 

43,073,460 

60,533,905 
939,757,555 

98,170,720 
815,686,750 
130,485,880 

57,578,975 
8,490,920 

12,275,455 
1,844,357,798 



6,604,546,473 



116738 

99.09 

92.33 

227.19 

80.07 

58.20 

112.08 

150.28 

67.20 

102.35 

145.81 

327.97 

169.21 

107.22 

378.31 



144.21 



Deposit, 
per in- 
habitant. 



$26.35 
163 
21.84 
12.56 
11.01 
10.18 
30.26 
2&87 
19.63 
21.47 
31.07 
10.97 
6.31 
6.14 
26.73 



11.31 



Money in circulation in the United States on the date of Mr. 
Bryan's nomination in 1896 and 1900, respectively, and on 
the first day of each month from July, 1896, to July, 1900. 

The following table shows the amount of money in circulation at 
the date of Mr. Bryan's nomination, and at the begin uing of each 
month since that date : 

Money in circulation in the United States on the first day of each month from 
July 1, 1896, to May 1, 1900. 

[From official reports of the Treasury Department.] 



July 

August 

September 
October — 

.November. 
December.. 



January . . . 
February . . 

March 

April 

May 

June 

July 

August 

September 
October — 
November. 
December . 



January . . . 
February . . 

March 

April 

May 

June 

July 

August — 
September 
October — 
November. 
December . 



Date. 



1890. 



1898. 







Monev 


Gold coin 
and »old cer- 


Total money 


in clrcu- 


tificates in 


in circulation. 


per 
capita. 


circulation. 




$498,449,242 


$1,509,725,200 


$21.15 


484,587,423 


1,514,903,142 


21.18 


502,863,608 


1,539,169,634 


21.48 


517,508,129 


1,582,302,189 


22.05 


554,538,288 


1,627,055,614 


22.63 


554,746,631 


1,646,444,746 


22.86 


555,630,668 


1,650,223,400 


22.87 


553,054,758 


1,655,977,688 


23.05 


553,860,515 


1,675.694,953 


23.14 


554,582,096 


1,669,000,694 


23.01 


554,743,595 


1 ,666,560,383 


22.68 


557,609,752 


1,659,753,895 


22.80 


556,432,594 


1,646,028,246 


12.57 


556,301,181 


1, 646,471 ,139 


22.53 


558,866,352 


1,665,680,098 


22.76 


564,997,312 


1,678,840,538 


22.89 


576,088,062 


1.706,732,904 


23.23 


581,220J57 


1,721,081,537 


25.39 


584,126,049 


1,721,100,640 


23.34 


588,079,683 


1,729,991,228 


23.42 


590,325,671 


1,726,376,6d9 


23.33 


618,448,941 


1,756,058,645 


23.69 


652,990,509 


1,806,761,442 


24.33 


685,4-55,090 


1,839,898,256 


24.73 


696,780,519 


1,843,435.749 


24.74 


680,939,733 


1,809,198,344 


•24.28 


666,166,175 


1,792,096,545 


23.96 


658,043,721 


1,816,596,392 


24.24 


685,185,636 


1,866,575,782 


24.87 


694,267,162 


1,886,879,504 


25.09 



IMPROVED BUSINESS CONDITIONS. 



235 



Money in circulation m the United Stales on the first day of each month from 
July 1, 1896, to July 1, 1900. — Continued. 

' [From official reports of the Treasury Department.] 



Date. 



Gold coin 
and gold cer- 
tificates in 
circulation. 



January 702.008,838 

February 730,1)27,339 

March 735.272.10X 

April 727,748,591 

May 7>;>,.i>i2^.471 

June 757,068,366 

July 734,716,728 

August 733,850,173 

September 741 ,622,181 

October 745.234.744 

November 762,244252 

December 778,388,308 

1900. 

January 779,100,02! 

February 804,8 S0j065 

March 79 

April 78i 

May 814,063,156 

June 822,673,829 

July SJo.47J.4fiO 



Total money 
in circulation. 



1397,301 ,112 
1.018.260.557 
1.02^42.1112 
1.027.S4H.042 
1.033.Xt37.>02 
1.055.501.000 
1.031.4^.2^' 
1331,117,204 
1^41,131,141 
1,948,703J.86 
1363,716,148 
1378,528,733 



1380,398,170 
2303449355 
2302331,791 
2J021374306 
2360325,463 
2,074,687371 
2,062,425*496 



Money 
in circu- 
lation 

per 
capita. 



25.10 
25.42 
25.51 
25.45 
25.40 
25.73 
25.38 
25.31 
25.41 
25.45 
2530 
25.85 



25 73 

25 os 
23.03 

26 12 
26.58 
26-79 



Railway Business as a Barometer of General Business Con- 
ditions. 

The accompanying- table shows the mileage, capital stock and 
business of the railways of the United States in each year from 
1883 to 1898, and sets forth the wonderful growth of the system 
and showing that at the same time there has been a reduction 
in cost of transportation to the producer and the manufacturer 
and consequently the consumer. It will be seen that the number 
of tons of freight carried increased from four hundred millions 
in 18S3 to more than nine hundred millions in 1S98, while the 
average receipts fell from 1.22 cents per ton per mile to .76 of 
one cent per ton per mile. The number of passengers carried 
increased from 312 millions to .311 millions and the average re- 
ceipts for their transportation fell from 2.42 cents per passenger 
per mile to 1.99 cents per passenger per mile. An examination 
of the columns showing the receipts per passenger and per ton 
for passengers and freight respectively, shows a steady de- 
crease in the average transportation charges of the railways 
of the United States. Meantime the percentage of dividends 
paid on the stocks of the railways of the country has fallen 
from 2.77 per cent in 1S83 to 1.7 per cent in 1898, and the net 
earnings per mile have fallen from $2,679 to $2,111, while the 
percentage of expenses to earnings has increased from 63.82 
per cent to 68. IS per cent. 

It is quite interesting to note the apparent effect of the low 
tariff j'ears upon the business of the railway's. Freight carried 
in 1893, the year of President Cleveland's inauguraion was 757 
million tons and in 1S94 fell to 674 million tons, while 1898, the 
first year after the repeal of the low tariff act shows an increase 
of freight carried from 788 million tons in 1897 to 912 million 
tons in 1898. 

The net earnings of the railroads dropped from $2,069 per mile 
in 1893 to $1,803 per mile in 1894, and remained at about this 
point during Democratic and low tariff years, only again pass- 
ing the two thousand dollar line after the repeal of the Wilson 
act in 1897. The effect of this reduction of business and re- 
duction of net earnings under Democratic and low tariff rule 
was especially felt by the employees of the railways, whose earn- 
ings, as will be seen by another table were greatly reduced in 
the years in question, but have been greatly increased under a 
return to Republican prosperity. 



:35 



RAILWAY BUSINESS UNDER THREE TARIFFS. 



1^ 



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iSirKOVED BUSINESS CONDITIONS. 



237 



Contrast of conditions under Democratic and Republican control as Ulustra- 
first three years of the Cleveland and McKlrdey administrations re- 
ely. 



Annual Average. Annual Average 

First three years First three years 

of Cleveland. ofMcKinley. 



Imports of merchandise S74o.84-5.000 

E x ports of merchandise ^54.379.000 

Cxoess of exports 108.534.000 

Imports per capita Sio.74 

Exports per capita 12.32 

Exports of agricultural products 570,512.000 

Exports of breadstuff's 146,068,000 

Exports of wheat (bushels) *2,3<>$j000 

Exports of wheat and flour, value 114,684,000 

Exports of corn, • bushels | 52, 7,000 

Exports of corn meal 704.000 

Exports of provisions, value 8136.468,000 

P^xports of bacon, pounds 414,587.000 

Exports of lard, value - 7,391,000 

Exports of butter, value 1.757.000 

Exports of seeds, value 4.197,000 

Wheat per capita retained for consump- 
tion, bushel 4.24 

Imports of manufacturers materials Sl«7 .882.000 

Exports of manfactured articles 1^5.435j0O0 

Average per cent which manufactures 

formed of total exports 22. o7 

Imports of crude rubber, value 117,4* 

Imports of fibers 14.-.. 

Imports of hides and skins 25£44,000 

Imports of raw silk 23464,000 

Kxports of iron and steel, value .">.'««i 

Pig iron produced, tons 7,743,000 

Furnaces in blast. No 188 

steel rails manufactured, tons 1.140.000 

Tin plate manufactured, lbs 180,084,000 

Tin plate imported : 

Quantity, lbs 513,566j000 

Value S13jO31jO0O 

<"rude steel manufactured, tons 4.M9J000 

foal mined in United states, tons h2/W>3,000 

<Told in treasury J161,251/)00 

<iold and eold certiiicates in circulation. . 2 3,000 

Total money in circulation $1,59S,000,000 

Average per capita circulation 

Clearing house exchangee in U.S 550.250.000,000 

Railways constructed annual average, 

miles 

Net earnings of railways 5333.201,000 

Freight carried 1 mile, tons 

Railway dividends paid -t.imi 

Railway employees. No 

- of railway employees $441, 

Business failures : 

No 14,384 

Liabilities 

Average price of silver per fine oz 

Average price of No. 2. red winter wheat 

New York 67.3c. 



"3fi.404.O0O 

1.135 .2*3.0UO 

-9,000 

19.71 

16.28 

788JO5J0O0 

2S0.120JOOO 

122.930.000 

170.682.000 

200.857.000 

1.754.000 

168J15J0OO 

>s5^57jOOO 

s.000 

'.000 

5jO51,0OO 

5.08 "2 yrs. I 
242.671 

322.: - 

27.27-\m»i 
17432,000 
41,422 

33.41 5.1 «>i 

ll.rivj.u.i 

227 

*1.811.000 

23,000 

15tf.457.000 

gooo 

8£44000 

" >.000 

-"9.000 

70h;399«X) 

"0,000 

S75,32o.000 jOOO 

*366.229,000 

*K»;.2rt5.oO0jOOO 

:W 

11.278 
120.29ti.000 
59.6c. 



90.0c. 



Average for 2 vears. 



THE FARMER AND THE TARIFF. 

The prosperity or adversity of the farmer under protective 
or low tariff is illustrated by the tables which follow. They 
show the number and value of farm animals from 1875 to 1899, 
the production and imports of wool, the imports of woolen manu- 
factures, the consumption of foreign wool in manufacturing-, 
the price of wool, the number and value of sheep on farms in 
each year from 1S75 to 1899; also the production and exporta- 
tion of wheat, the value of the wheat crop per acre, and, inci- 
dentally, the world's production of wheat from 1877 to 1899: 
also the imports and exports of the leading articles produced 
by the farmer during a term of years. 

The table showing the production and importation of wool, 
the importation of woolen goods, the value of standard Ohio 
wool, and the number and value of sheep on farms is especially 
illustrative of the direct effect of the Wilson low tariff and the 
disaster which it brought in this single item to the farmers 
of the United States. It will be seen by an examination of th* 



238 IMPROVED FARM CONDITIONS. 

table that the imports of raw wool, which was placed on the 
free list by the Wilson tariff act, which had never reached 150,- 
000,000 pounds prior to the year in which President Cleveland 
was inaugurated in his second term, reached 230,000,000 pounds 
inl896 and 350,000,000 pounds in 1897; and that the importation 
of woolen goods, which, in the prosperous year 1892 under Presi- 
dent Harrison, was but $35,565,879, was $53,494,400 in the fiscal 
year 1896 under the Wilson low tariff, and immediately following 
the enactment of the Dingley law fell to $14,823,771 in the fiscal 
year 1898, and $13,832,621, in 1899. In 1899, under the Dingley 
law, importations of raw wool were $8,322,345 against $53,243,191 
in the last year under the Wilson law. It will also be seen that 
the percentage of raw wool consumed in our factories which had 
seldom exceeded 30 per cent prior to the election of Cleveland for 
his second term was, in 1896, 45.9 per cent, and, measured by the 
imports, was 57.8 per cent in 1897, though it is probable that 
much of the 1897 imports was in fact retained for use in the 
following- year. Under this enormous importation of foreign 
wools and woolens, the number of sheep on farms fell from 
47,273,553, in 1893, the year in which Cleveland was inaugurated, 
to 36,818,643, in 1897, the last year under the Wilson law, while 
their value dropped from $125,909,264, in 1893, to $65,167,735, in 
1896, a loss to the farmer of $60,000,000 in this single item of 
sheep, directly chargeable to the Wilson low tariff; and this, say- 
ing nothing of the disruption of existing farm conditions and 
methods and the compulsory double adjustment by each individual 
engaged in this branch of farming to a new state of affairs, 
or the loss in value of his wool clip; the price of fine washed 
Ohio clothing wool fell in the New York markets from 31 cents 
per pound, in 1891, to an average of 18 cents per pound, in 1895 
and 1896, and returned immediately to 31 cents per pound in 
1899, under the Dingley law. Add to this the enormous loss 
on the wool itself during the existence of the low tariff law 
and the retention of the great supply which was brought in 
under it, and it is estimated that the loss to the farmer in the 
value of his sheep and their products from Democratic rale 
between 1892 and 1898 was, at a very moderate estimate, $150,- 
000,000. 

This loss of $150,000,000 on sheep is, however, trifling when 
compared with the loss in value of farm stock generally. The 
accompanying table, which shows the number and value of 
animals on farms from 1875 to 1899, prepared by the Depart- 
ment of Agriculture, shows that in practically every class of 
animals there was a decrease in value during the Democratic 
low tariff period and an immediate increase in value after the 
inauguration of President McKinley and the restoration of a 
protective tariff. On January 1, 1893, just prior to the inaugu- 
ration of President Cleveland, the value of farm animals in the 
United States was put down bj r the Department of Agriculture at 
$2,483,506,681. By January 1, 1894, even before the Wilson law 
had been enacted, but while it was under discussion, the value of 
farm animals had fallen to $2,170,816,754, a loss of more than 
$300,000,000. On January 1, 1895, one year later, their value had 
fallen to $1,819,446,306, or a loss in that year of $350,000,000 to the 
farmer. In the following year, there was still another reduction 
in value, showing a loss of nearly $100,000,000, and on January 1, 
1897, a still further reduction of $75,000,000, making a total loss in 
value of farm animals alone, from January 1, 1893, to January 
1, 1897, of $828,092,069 — nearly a billion dollars loss to the farmers 
of the United States in the single item of the value of the 
animals upon their farms. 

Another statement which is of great interest to the farmer is 
that which shows the amount of wheat and flour which the 
people of the United States were able to buy from him under 
protective and low tariffs respectively. That the market of the 
United States is of vastly greater importance to the farmer than 
the foreign market is conceded. Generally speaking, about one- 
third of the wheat product is exported. In .1899, 32.97 per cent 
of the wheat produced in the county was exported; in 1897, 
33.93 per cent, and during the last twenty years the average 
has run at about this rate, which fact indicates in some degree 
the importance of the home market to the farmer as compared 



Improved farm coftDitfiofts. 239 

with that of the foreign market, while in many other articles 
of farm production the home market is of much greater pro- 
portionate importance. 

An examination of the table showing the percentage of 
wheat and flour retained for consumption at home from 1868 
to 1898 shows that the number of bushels of wheat retained 
for home consumption fell to a lower point during 
President Cleveland's last term than in the entire thirty- 
year period covered by this table. In 1890, the wheat retained 
for home consumption was more than six bushels per capita, 
and in 1892 but a trifle below that figure. In 1893, it fell to 4.85, 
in 1894, to 3.41, and in 1897, the last year under low tariff, to 
3.88 bushels per capita, while by 1899, under the prospect of the 
protective tariff, and employment, which came with it, the 
amount retained for consumption had again almost touched the 
six-bushel line, being 5.95 bushels per capita. 

Another advantage of the protective tariff is found in the table 
which shows the cotton retained for consumption b3' American 
mills during" a term of years. It shows that while the 
amount of raw cotton retained for consumption under the Mc- 
Kinley tariff had reached 24 pounds per capita in 1892, it fell 
to 15.91 pounds in 1894, and in 1897 was but 18.46, while 1898 
showed 25.26, and 1899, 27.14 pounds per capita retained for 
use in the mills of the United States. 

The table showing the quantities of wheat produced and 
of wheat and wheat Hour exported and retained for con- 
sumption shows that under the low tariff the wheat re- 
tained for consumption fell, in 1894, to 231,848,596 bushels, 
and in 1897, to 282,559,374, against 386,114,188 in 1892. Nor 
can this fact of the retention of a small amount for home 
consumption be charged to any unusual demand for ex- 
portation or high prices brought, since the export price of 
wheat in 1894, the year of the smallest home consumption, was 
only 67 cents, as against $1.03 per bushel in 1892, when the 
amount retained for home consumption was more than fifty 
per cent in excess of that of 1894. In 1897, the second year of 
small per capita consumption, the average export price was 75 
cents per bushel, against 98 cents per bushel in 1898, in which 
year the amount retained for consumption exceeded that of 1897 
by 30,000,000. It will also be observed that the value of the 
wheat crop of the United States, per acre, fell during the Demo- 
cratic and low tariff years to a lower point than ever before 
in the period covered by the table — 1877 to 1899 — and immediately 
upon the election of President Mclvinley increased to a point 
higher than in any year since 1882, with the single exception of 
1891 under President Harrison. 

One additional table should be carefully examined. Tt shows 
the world's production of wheat from 1S77 to date, the figures for 
the years 1877-1889 being the average crop during that time. Jt 
will be observed that the world's production during that period — 
1877-1899 — has increased fully 50 per cent, the average crop from 
1877 to 1880 being 1,944,000,000 bushels, while that of 1898 was 
2,879,924,000. This fact that the world's production of wheat 
has increased one-half in this short period of time may be con- 
sidered as accounting largely for the decreased prices, the fall 
in price being no greater in proportion than the increase in 
production. 



Imperialism, as it was termed, had a chief place in the cata- 
logue of disasters which would follow the ratification of the 
Louisiana treaty, and it was alleged that this was the first and 
sure step to the creation of an empire and the subversion of 
the Constitution. Jefferson was made the subject of satirical 
verse: 

See him commence, land speculator, 

And buy up the realm of nature, 

Towns, cities, Indians, Spaniards, prairies. . . . 



240 



IMPROVED FARM CONDITIONS. 



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XXXXXX3CXXXXXXXXXXX ^3 >3 >3 J33 > ; X X 3 



IMPROVED FARM CONDITIONS. 



241 



Value of principal farm crops in Hie United States, 1866 to 1S99. 
[From report of Department of Agriculture.] 



Calendar 
year, 



Corn. 



Wheat. 



Oats. 



Rye. 



Barley, 



i860.. 
1867,., 
1868.. 
1869.. 

1870.. 
1871.. 
1872.. 
1878.. 
1874.. 
187.3.. 
1876.. 
1877.. 
1878.. 
1870.. 
1881).. 
1881.. 
1882.. 
1883.. 
1,884.. 
18*3.. 
1886.. 
L887.. 

1889.. 
189b.. 

1891.. 

1.892.. 
18$ : * 

1891* 

24196* 
1897.. 
1898.. 
1899,. 



£111,450330 
437,769,763 

424.050.049 
522350309 
540,520.450 
430,355,910 
385,736,210 
411.001,151 
496271255 
484374304 
456,108,521 
467335230 
440280,517 
580,486217 
679,714,499 
7-30.482.170 
783367,175 
658.051.485 
640,735360 
68-5.674.080 
610,311,000 
016,106,700 
677,561,580 
597318329 
754,433,45] 
836,439228 
642440330 
&91fi&5fi£} 

191/W6',967 

501.072.it52 
552^23,428 

020.210,110 



5232405)330 
-7.14(1 
243332,746 
199324396 
222,760309 
264375351 
278.522.0fW 
800369383 
265381407 
261396326 
278.i : " 
885389,444 
325314419 
497330442 
474201350 
456380427 
445302425 
383349,272 
830362260 
275320390 
314226320 
310,612360 
385,248330 
342,491^07 
334,773378 
513,472,711 
322441361 
213,171^81 

S,99S 

42S.547.121 
392,770320 
319345259 



I94357345 
123302356 
106355376 
109521,734 
96443387 
92391359 
81303318 
93,474461 
113433334 
113,441491 
103344396 
115346494 
101,752468 
120333294 
150243365 
198496370 
18237* 
187340264 
101328,470 
179331 360 
I8643733O 
200399,790 
195424240 
171,781308 
222348,486 
232312267 
209253311 
187 3; 
. 

--ji.lt 
147.071.710 
I86,40536i 
199,167375 



$17,149,716 
23280384 
2134949O 
17341361 
11326367 
10,027,028 
10371361 
10388258 
II3IO339 
11394223 
12. 504 .070 
12201,759 
13366302 
I5307431 
18364360 
19327,415 
18,439494 
16300303 
14357340 
12394320 
13481330 
11283440 
16,7213*9 
12309 ,752 
16229392 
24389217 
15,100,050 
ISfil 

12239347 
11375350 
1221441a 



$7316342 
18327,740 
24.048.127 
20298464 
20,792313 
20204,015 
18,415339 
27,794229 
27397324 
27367322 
24,402.001 
21329430 
24454301 
23.714.444 
30390,742 
83362318 
30,768315 
20.420.428 
29,779470 
32367396 
: 51.840 ,510 
29,464390 
87.072.082 
32314271 
42.140,502 
45,470342 
:{8,026,062 

22, vju; 1 
25442439 

23364359 
29394254 



* Democratic- and low tariff years. 

Merchandise imported, into, exported from, and retained for consumption in 
the United States, 1868 to 1S99. 
[From the statistical Abstract.] 



Year. 



1872... 
1873... 
1874... 
1875... 
1870... 
1877... 
1878... 
1870... 
1880... 
1881... 
1882. . . 
1888... 
1884... 
1885*. . 

1887*.. 

1890... 

1801... 
1 892 . . 

im\.. 

189o\. 
1896\ . 
1897\. 

1808.. 



Imports. 



: Q Z 

; ? a 



as = 



fr :•' 



1871 112.65 



18.80 
15.91 
1826 

11.97 
10.20 
9.49 
0.21 
8.00 
12.51 
12.68 
13.04 
13.05 
12.16 
10JJ 
10.Z9 
11.65 

ii£8 

12.10 

12.35 
18.80 
12.44 
12&h 

10 JS 
10S6 

lo.s \ 
7.80 
9.02 



Exports of domestic Retained for consumption 
merchandise. per capita. 



- ft 

~ 



8542 

5.28 
4.44 
8.75 
831 

3.22 
2.77 
2.07 
2.73 
3.64 
3.78 
4.12 
3.02 
8.47 
J.17 

,;..>>' 

SS5 
S£0 

3.00 
8.02 
8.80 
2.1,0 

1.90 

J.l' t 

1.96 



&!>■§£ --ZZ 
* . g 9 '-_ r. - 3 

'--~r~~ ---- 
c Z -I — c w ?~r- 



$1033 

10.5.5 
12.12 
18.81 
11.86 
11.64 
12.72 
14.30 
14.20 
16.48 
1723 
13.07 
14.08 
18.20 
12J91, 
11.60 

li.ys 
lljfo 

11.02 

13.50 
13.63 

15.58 

u.y, 
12.73 

US! 
12.11 

i\.i; 

16.27 
15.84 



P. cent. 
70.74 
74.13 
76.10 
7937 
70.05 
71.67 
7233 
77.07 
78.12 
8325 
82.68 
75.81 
77.00 
73.98 

;:.>.' 
7JU0 
73JS5 
72.87 
74.51 
73.69 
78.69 
7 ',.'>:> 

69.73 

6633 

70.54 
65.20 



P. cent. Lbs. 

14.10 

11.10 

15.10 

13.60 

16.57 11.90 

17.08 14.77 
21.61 I 14.08 

17.70 18.71 

16.72 15.90 

12.48 18.94 

12.02 19.04 

1838 16.15 

16.60 20.80 

18.81 16.30 
. . . " 
2030 
19.A5 
19.05 

1F.99 

17.87 
10.37 
15.61 
19M 
S1.U 

26J87 

24.02 
28.18 



Haw wool con- 
sumed. 



- - 

H 



Bush. 
4.60 
4.70 
4.81 
4.46 
538 
4.80 
5.01 
5.72 
5.58 
5.85 
6.09 
4.08 
6.64 
5.64 



15.16 


6.77 


19.59 


',.-■; 


16.% 


5.27 


19.59 




17.22 


5.34 


18.50 


6.09 


22.02 


4.58 


24.03 


5.91 


17J0fi 


U85 


15.91 


S.4,1 


:.■.;> 


u : 


18. W 


4-7S 


1*46 


SJ&8 


\ 25.26 


4.21 


27.14 


5.95 



- - 

r 



iba. P. 

5.78 

6.75 

5.67 

4.81 

5.28 

5.21 

5.16 

5.28 

5.03 

6.11 

5.66 

6.86 

6.62 

6.85 

6.69 

7. 39 

6j68 

631 

633 

6.03 

0.43 

6.72 i 

7.o5 

5J)8 

6*88 
8£6 
5.34 j 
4.40 



cent. 
29.4 
453 
332 

17.5 

22.1 

18.8 

16.8 

16.0 

14.2 

84.0 

17.3 

19 

18.7 

20.6 

I8J& 

iwi 

27.4 
98S 

31.8 
27.0 
80.8 
38.1 

US 

W.0 
A5.9 
57.S 
4S..9 
32.8 



* Democratic President, but Republican control of one branch of Congress, 
t Democratic President and low tariff. 



242 



IMPROVED FARM CONDITIONS. 






Wool Production, Importation, Consumption. Prices, Etc., in 
the United States Under Free-Trade and Protection. 
The table which follows presents the record of wool produc- 
tion, importation and consumption, and the importation of 
woolen manufactures in each year from 1875 to 1899 and the 
effect of free trade in wool upon the farmer and those engaged 
in manufacturing. The figures of importation are for fiscal 
years ending June 30, and therefore the Wilson low tariff, which 
became a law August 28, 1S94, does not apply to the fiscal year 
ending June 30, 1894, except as to its effect in causing importers 
of wool and woolen goods to hold back their importations in or- 
der to bring them in under the new act, which promised free 
wool and a low tariff on woolen manufactures. Under that act, 
which became operative in the second month of the fiscal year 
1895, importations of foreign wool were greater than in any 
preceding year, and those of 1896 exceeded those of 1895, while 
those of the fiscal year 1897, all of which elapsed before the 
enactment of the Dingley law, July 24. 1897, were 350. 852. 020 
pounds, or twice as much as in any year r.rior to the enactment of 
the Wilson law, and three times as much as the average for the 
decade preceding that act. Prior to the enactment of the Wilsofi 
law, the percentage of foreign wool used in the woolen manufac- 
tures of the United States ranged from 40 to more than 57 per 
cent, according to the figures of the Statistical Abstract; but 
since the enactment of the Dingley law has steadily fallen and 
was in 1S99 only Pj per cent of the consumption. The value of 
foreign wool imported, which in the fiscal year 1897, the last 
year under the free-trade Wilson law, was $53,243,191, was in the 
fiscal year 1899, under the protectice Dingley law, but $8,322,345, 
while the importation of woolen goods, which in 1896 under the 
Wilson act was $53,493,400, was in 1899 $13,832,621. This enor- 
mous importation of foreign wool and woolens so affected prices 
of wool that Ohio fine washed clothing wool, which had ranged 
for years at from 31 to 41 cents per pound, dropped in 1895 and 
1896 to 18 cents per pound, but has since the enactment of the 
Dingley law again risen to 31 cents per pound. The effect upon 
farmers of the reduction in price of wool cannot be statistically 
stated so far as relates to the actual amount of money received 
for the wool grown, though it is probable that the sum received 
by them for their wool during the existence of the Wilson law 
was much less than one-half that of former years, as the produc- 
tion shows a marked decrease, and the price per pound, as already 
indicated, showed a fall of nearly one-half. Under this tremen- 
dous shrinkage in value of the wool product, the farmers in many 
cases disposed of their sheep, the exportation of sheep and mut- 
ton showing a large increase during the Democratic period, while 
the number of sheep on farms, as shown by the reports of the 
Department of Agriculture, fell from 47,273,553 to 36,818,643 and 
their value fell from $125,909,264 to $65,167,735, a loss of $60,000,- 
000 in value of sheep alone, to say nothing of the much greater 
loss in value of wool. 

Wool production, imported consumption, and manufacture in the United 

States; aiso price of moot and value <>/ sheep on farms, 1S75 to 1900. 

[From the Statistical Abstract of the United States, 1899.] 



6B. 

H 


Produc- 
tion. 


Imports. 


- - 
z z 

fiE. 

MS 

z -s- s 
- 

22.1 

ias 

16.3 
16-9 

14.2 
34.9 
17.3 
190 
18.7 


Value of 

onvool.i 

ufactt 

Wool, 
raw. 


import** ~±- sheep o 
lud man- ©S j§ iu the 
res of. 9S - s tai 

Manu- r7= = 
factures r- £ Xuniber. 
of wool. £ 5 ~ 


n farms 
United 
as, . 

Value. 


1S75.. . 

1*76.. . 
IN 7.. . 

i87a.. 

1879.. . 
18S0.. . 
1881.. . 
1882.. . 
1S83... 


Pounds. 
181000000 

192.000.000 
200000.000 
208.250.000 
211jOOOjOOO 
232,500 jOOO 
240,000.000 
272,000000 
290000000 


Pounds. 
54.901.760 
44042036 

12.171.192 
48.449079 
39.005.155 
12S.131.747 
5*064036 
ti7.XJl.744 
70,575,478 


Dollars. 

11071238 
* .247 .HI 7 
7,156044 
8363016 
5034,545 

23,727050 
9,703068 

11096050 

10049331 


Dollars. Cents. 
44.609,704 48 33^783000 
33,209000 45 35035000 
25,701022 48 350O4#» 
25330,154 35 35.740,500 
24055021 41 I 38,123000 
33.911.093 46 1 40.765000 
31.156.426 43 43,569,$99 
37061020 42 45016024 
44,274052 3y 49,237,291 


Dollars. 
94.320.652 
93066018 

80.603062 
79023084 
90030037 
104070,7a 
106,595054 
124066,33o 



IMPROVED FARM CONDITIONS. 



243 



Wool production, imports, consumption, and manufacture in the Unit* 

States; also price of wool and value of sheep on farms, 1875 to 1900. — 

Continued. 









z ■- 


Value of imports 


e5^ 
sB 8 


Sheep on farms 








Pfl 


of wool, and man- 


in the United 


1 

I- 


Produc- 
tion. 


Imports. 


- P 
oo 

- z - 


ufactures of. 


z — . 

S ~~ — Z 

z-z- 
B<3 


States.: 


Wool, 
raw. 


Manu- 
factures 
of wool. 


Number Value. 




rounds. 


Pounds. 


Dollars. 


Dollars. 


Cents. 


Dollars. 


1884.. . 


300*00*00 


78*50*51 


20.6 12*84,709 


41451*83 


3-5 


50*26,626 119,902,706 


1885... 


308,000,000 


70*96470 


18.0 


oo.77H.5-59 


33 


50*60,248 107:060,650 


188C-. . 


302,000,000 


129*84*58 


28.0 16.746,081 


41.421*19 


35 


48^22881 02.443^67 




285*00*00 


114*88*30 


27.4 16.424,470 


44.fKr2.718 


32 


44,759314 8. 




269*00*00 


113*58,753 


28.0 15.S87217 


R 71 


31 


44,544.755 89279*26 




265*00*00 


126,487^29 


31* Yl ' ' - 


52*64*42 


33 


42*99*79 90*40369 


1890.. • 


276*00*00 


105,431385 


27.0 15,264,083 


56382,432 


33 


44*36*72 100*59,761 


1894... 


285*00*00 


129*03*48 


308 


18,231,372 


41*60*60 


31 


48.421.] 36 108*97447 




294*00*00 


148*70*52 


33J 


19,688408 


V-. vy>>~: 


29 


44*38*65 116.121.290 




308458*00 


172*483*38 


35.7 


21*64480 




23 


47278*53 125*09264 








U£ 






19 










ffl£ 






tt 


































- 




2HH.720.tW4 


132,795,202 




16,783*92 


-- n 




37*56*60 92,721433 




272,191.330 


76,736^09 


10.2 


• 22, 1 




31 


39414458 107*07*30 


1900.. . 














41*83*6Bjl22*65*13 



















* Except in number and value of sheep on farms and prices of wool. 
f On October 1 of each rear. 

J on .January 1 of year named. 
\ Democratic and low tariff years. 
Note.— The importations of wool and woolen goodi in the fiscal year 1804 
were held back to obtain the reduction in duties by the Wilson Act, then 
pending, and which went into effect August 28, 1894. 

Prices of Form Products in 1S9>^ and 1900. 

The following table shows the range of prices for farm products, 
in different markets, in June of 1896 and June, 1900: 

[Compiled from official reports.] 





Price. 


Product. 


Market. 


Quantity. 


Jure 


June. 1900. 


Wheat, No. 2. Spring... . 

Red Wint 

Corn. No. 2 


Chicago. 

N.Y.f.o.b. 
Chic; 
N. Y. 
Chii ago. 

8t Louis. 
N. Y 

St. Louis. 
Chicago. 
N. Y. 
Elgin. 
N. Y. 
St. Louis. 
N. Y. 
St. Louis. 


Per bushel. 
.. 

Per ton. 
Per bushel. 
Per lb. 

.. 

.. 

Perlooibs. 
Per lb. 

Per doz. 

Per lb. 


8054 a - 

- : 

0*3 A 0*4% 
0.1. V 4 A 0J8% 

v 0.34 
9*0 ~ A 10.00 
030 A 0.45 

0.07 A 0.07 C 
0.17 L, A 

048 " A o.io 

2.70 a 
0.1V. A 
0.14 " & .15L, 
0.1 1 1 .. A 0J2% 

I o.o8c; 

0*6% & 0.77*4 
* 0.08 C 


|0*5> \ A 8ft66> \ 

fe ft80% 

0*7J4 A 0.37^, 
ii.42 : ; A- »,43&/g 

021% a tm% 

HL50 A 11.00 

.v 0.43 


Oats, •• 

•• 

Hay. No. 1, Timothy .. . 


Hops. Choice 


0.13 A 0.14 
0.34 A 0*6 


tub •• 

Live Hoes 


0*2% 

4.10 " A 5.213 


Butter, Cream, Ex 

est 


0.20 1 i 

0.10 l; 

843% A 0.14 


.. 


0*9% 

0.00'-; 
0.12 " 


Cheese. Sept.. Colored . . . 
Full Cream 



It will be seen that the advances have been very substantial, and satisfactory 
to the farmers, under this Republican administration. 

Price of Coiinn in 1S96 and 1900. 

The following closing quotations on Midland Upland Cotton, at 
corresponding dates in 1896 and 1900. will remind Southern farmers 
of the improvement in the value of their staple product, that has 
taken place under the Republican administration: 

Market. 

Galveston 

New Orleans. 

Mobile 

Savannah 

Norfolk 

Boston 

Baltimore 



Cts. per lb. Cts. per lb. 
May 29, 1896. June 1.1900. 



$ 



: 



Market. 


Cts. per lb. 
M ay 29, 1896. 


Cts. per lb 
June 1 4900. 


Philadelphia 






%L 


Augusta 






¥4 


Memphis 






Houston 


^ 




> = 


Cincinnati.. . . 




9% 


Louisville... . 


-- 






New York.. . 


B 




9 



244 



IMPROVED FARM CONDITIONS. 



S 00 
03 

a) 

ts . si 



5* 

DC -(-= 

a fl 



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i m s ^ c ^ :.^ i- r. •; o 'i t i- n -r '- c :i r / y v; 'iNO-i 
£ oo, 5DCQ "-C ©„^i ©..-, cc, ©_.© v -rx..oi© := to — co — £ - - f- S -3 
Stkoo~- = -?--'i- n ce>os © oooco >a ?-. to ^ ? 'o^i-To? 



2 



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